Kasbah rights issue raises $3.8 million

Kasbah Resources has completed its $8.3 million rights issue to fund its Achmmach tin project in Morocco.

The company received applications from shareholders to subscribe for 55,502,427 new shares at 7 cents per share to raise more than $3.8 million, representing a take-up of 46.7 per cent of shares offered.

The directors of Kasbah reserve the right to place the remaining shortfall shares within three months at their discretion with interested subscribers, subject to relevant ASX listing rules.

The company said proceeds from the capital raising would be used to fund extensional drilling at the Western Zone Shallows target, Achmmach definitive feasibility study optimisation and for financing and off-take activities.

Kasbah shares were 7.1 cents at the close of trade today.