Aguia Resources (ASX:AGR) is set to raise up to AU$4 million through a non-renounceable entitlement issue of units at AU$0.0270 apiece, according to a Tuesday filing with the Australian bourse.
The new units will be offered on a ratio of one new share for every ten shares held, the filing said.
Participants will also receive one free-attaching unquoted option for every two shares subscribed, at an exercise price of AU$0.035 with an expiration of two years from the issue date, the filing added.
Proceeds will be used to fund the development of the company's Santa Barbara gold project, general working capital requirements, and offer costs, the company said.
Shares of the company fell 20% in recent Tuesday trade.
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