Summit Resources (ASX: SMM) will be undertaking a fully underwritten 1 for 50 renounceable rights issue of fully paid ordinary shares in Summit at a price of $1.93 for each New Share to raise approximately $8.1 million.
The purpose of the Rights Issue is to raise funds to be used for further exploration work on Summit's Isa North tenements to meet commitments under the Isa Uranium Joint Venture with Paladin Energy (ASX: PDN) to meet Summit's ongoing general operating and administration costs and for expenses associated with previously announced litigation.
Under the Rights Issue, Eligible Shareholders will be entitled to apply for one New Share at a price of $1.93 per New Share for every 50 Summit shares held by them at 4.00pm (Perth time) on 14 December 2009 subject to the terms of the Rights Issue.
The full terms of the Rights Issue are outlined in the Rights Issue Booklet that will be released to ASX today and mailed to Eligible Shareholders following the Record Date.