Zambezi Resources (ASX: ZRL) is in pre-open this morning following the ASX granting the company a trading halt, pending an update on an entitlements issue.
Zambezi is focused on the Kangaluwi Copper Project in Zambia.
In mid-April the company announced a pro-rata renounceable Entitlement Offer of new ordinary shares and attaching options to raise a maximum of $15,374,745 million. The issue is partially and conditionally underwritten by Patersons for a minimum of $10,000,000.
Auctus Resources Fund (formerly LinQ Resources Fund) has agreed to sub-underwrite $6 million of the $10 million that is conditionally underwritten by Paterson Securities, the required condition being that existing shareholders subscribe for a minimum of $1.5 million.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Thursday 30th May 2013.
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