NuPower Resources (ASX: NUP) will grow its cash reserves by around A$609,000 on completion of a recent pro rata non‐renounceable rights issue, with the company set to rebrand itself as Central Australian Phosphate.
The company received initial applications for around 26.3 million shares at $0.016 each raising $420,000 of the total.
Under the offer, eligible shareholders who applied for their full entitlement were entitled to apply for additional shares at the issue price of $0.016 per share.
Applications for shortfall shares have been received for an additional 11.8 million shares to raise a further $189,000.
NuPower believes its change of name, which was approved by shareholders at this week’s AGM, is reflective of its key commodity and geographic focus.
Funds raised from the rights issue will be used primarily for the further development of the Arganara Phosphate Project in Northern Territory.
With NuPower’s redirection of focus to its portfolio of phosphate projects at the start of 2011, the company has since defined an Inferred resource of 310 million tonnes at 15% phosphate at the wholly owned Arganara Project.
Arganara hosts one of the largest phosphate resources defined in Australia and the second largest reported resource in the Northern Territory, and is strategically located close to the Darwin to Alice Springs rail line.
Nupower has identified a 27 kilometre long zone of phosphate mineralisation containing numerous high grade drill intersections.
The Arganara Prospect is located immediately beside the Barrow Creek 1 project which has a JORC resource of 253 million tonnes at 15% phosphate.
NuPower is targeting a direct shipping ore (DSO) resource in the next phase of drilling, following up on substantial DSO grade intersections already reported – including 35.4% phosphate from one hole.
The company has estimated that the mineralisation to the east of the resource, which has only been tested by broadly spaced drilling, has an exploration potential of 30 to 60 million tonnes at around 10 to 15% phosphate.
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