- Sydney and London listed MOD Resources said it had rejected a takeover approach from Sandfire Resources, and would raise A$15m via an institutional placement and rights issue.

MOD said it had received an unsolicited, non-binding, indicative and conditional share-based proposal equivalent to A$0.38 per MOD share.

'The board believes this proposal undervalues MOD's unique and extensive assets,' the company said.

Funds from the share issue were intended for working capital to advance the T3 copper project in Botswana towards production and defining additional resources within the surrounding project area.

MOD said it had received firm commitments for the share issue.

'With strong ongoing support of our shareholders through a placement and a fully underwritten rights issue, we believe that the company will have sufficient working capital to achieve our objectives,' managing director Julian Hanna said.

At 9:42am: [LON:MOD] share price was +6.5p at 20.5p

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