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Zambezi Resources encouraged by investor support, raises nearly A$2m for copper exploration

Zambezi Resources (ASX: ZRL) has raised A$1.98 million from its recent non-renounceable rights issue to fund working capital and exploration and development of its Kangaluwi Copper Project in Zambia.

The company offered shareholders one share for every three existing shares held at $0.011 per share.

Existing shareholders applied for about 197.6 million of the shares on offer. The shortfall consists of around 221.9 million shares.

When Zambezi first announced the capital raising in late November, the company said if the rights issue does not raise $4 million, the company will use "best endeavours" to conduct a further equity raising for any shortfall before 30 June 2012.

Zambezi’s Kangaluwi Copper Project continues to reveal its copper potential with further high grade intersections from diamond drilling and only one quarter of the 28 kilometre strike length having been drill tested so far.

In December, Zambezi announced intersections of 8 metres at 0.74% TCu from 68 metres and 6 metres at 1.26% TCu from 41 metres from the Kalulu Prospect and 16 metres at 1.34% TCu from 58 metres at the Chisawa Prospect.