The one-for-four renounceable rights issue will raise up to A$14.17 million and will be fully underwritten by lead manager Mahe Capital.

The offer is priced at 6.5c per share, a 28% discount to the 30-day volume-weighted average price but a 43.5% discount to the last closing price of 11.5c.

A-Cap has been suspended from trading since mid-September due to the raising and after receiving a price query after its shares doubled from 7c to 14c over two sessions.

The company had cash and equivalents of $3.5 million at the end of June, but the funds will be used to repay a $13.18 million loan owing to Singapore Shenke International.

Shenke will take up its entitlement and sub-underwrite the offer to $13.18 million.

A-Cap is planning to start a prefeasibility study on its Wilconi nickel-cobalt project in Western Australia, where the company is earning 75% from Wiluna Mining Corporation.

Drilling since June returned results including 5m at 2.11% nickel and 0.43% cobalt from 38m and 19m at 1.28% nickel and 0.1% cobalt from 31m.

A-Cap said it was still considering its options for the Letlhakane uranium project in Botswana given the recent increase in the spot price.

Shares in A-Cap dropped 25% to 8.9c.