The company will issue approximately 100,011,842 new shares to shareholders on the basis of one new share for every 3.75 shares held.
Shares will be issued at price of four cents per share, which will be fully underwritten by Ansheng Investment, which is controlled by director Angang Shen.
The shares issued will be ranked equally with the company’s existing fully paid ordinary shares.
A-Cap said: "The company advises that under the Rights Issue eligible shareholders will be entitled to participate in a shortfall facility and apply for new shares in excess of their pro rata entitlements."
Proceeds will also provide additional working capital to the company.
The feasibility work will facilitate mining licence application for the project in the first half of 2015, and prepare the project for early development and production.
