The amount is going to be raised through the placement of new ordinary shares and would be used for exploration for gold, diamond and nickel.
Net proceeds from the share placement are expected to be around US$16 million with US$800 000 covering expenses.
The proceeds would be used to fund “an aggressive programme of exploration activities across the company’s portfolio of projects in Zimbabwe”.
“In particular, the company’s intended exploration work programme includes a drilling programme at the Blue Rock gold project with the aim of defining a maiden JORC (Joint Ore Reserves Committee) resource and drilling at the Pickstone Peerless gold project with the aim of expanding and upgrading the project’s existing 513 000 ounces inferred JORC resource,” said the company.
JORC is a professional organisation that examines and regulates reporting practices associated with mineral deposits to eliminate cases of misrepresentations which may mislead investors.
ACR wants to undertake a drilling programme at the Giant Mine gold project to expand the existing 300 000 ounces (per annum) and the drilling of the Chishanya phosphate project to define a resource at Baradanga Hill.
The funds would also be used to undertake pitting activities at the Horseshoe nickel project with the aim of defining a maiden JORC resource.
ACR also intends to finance the progress of exploration activities including electromagnetic survey and drill target definition work at the Perseverance nickel project, selective diamond drilling at the Snakes Head platinum project and Cedric copper project and regional diamond exploration.
Chief executive officer of ACR Andrew Cranswick said the mining company’s projects and strategies have been warmly received by the investment community.