Emerging West Africa focused resources company Volta Mining says it will undertake a capital raising to raise up to AU$1 million to complete a stage 1 drilling programme at its Mbombo Iron Ore project in Gabon.

The company explained that it would private placement to consider sophisticated investors for private placement to raise up to A$300,000, and a share purchase plan (SPP) to eligible shareholders to raise up to A$700,000.

Volta advised that under the placement, up to 4,545,455 shares would be issued at AU$0.066 per share, while under the SPP, eligible shareholders will be entitled to subscribe for up to AU$15,00 worth of shares also at an issue price of A$0.066 per share.

The price of the capital raise represents a 20% discount to the volume weighted average market price of the company’s shares in the five trading days ending 17 May 2013, the company said in a statement.

The iron ore and gold-focused company said that the number of shares to be issued under the SPP would be capped at 10,606,060. Details in relation to the SPP will be sent to eligible shareholders during May 2013.

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