Pelican Resources Limited (ASX: PEL) intends to undertake a fully underwritten non-renounceable rights issue of approximately 21,554,285 shares (Rights Issue).
Under the proposed Rights Issue, eligible shareholders will be entitled to subscribe for one new share for every five shares held at the record date, at the issue price of 5 cents each. Azure Capital Pty Ltd has agreed to underwrite the Rights Issue.
The Rights Issue will raise approximately A$1.07 million before costs. The proceeds of the Rights Issue are intended to be used for working capital purposes and progressing the Romblon Nickel Project in the Philippines.
Pelican Resources shares rose 15% to 9 cents today.
Disclosure: The author holds no positions in the company