Renascor ResourcesLtd. said May 11 that it plans to raise A$1.1 million to acceleratedevelopment at its Arnographite project in South Australia.

The capital raising consists of a placement of A$711,000 to sophisticatedand professional investors, with a conditional placement of A$389,000 to entitiesassociated with company directors and other sophisticated investors.

All shares will be issued at 1.5 Australian cents per share andinclude a free attaching option for every 4 new shares issued. The options are exercisableat 3 cents apiece before Sept. 30.

The proceeds will be used to fund resource expansion drilling,expected to kick off later this month, and to start metallurgical test work on theSiviour deposit.