Future Metals (ASX:FME) will launch a one-for-three pro-rata non-renounceable entitlement offer at a price of AU$0.011 per share via the issuance of up to around 239,600,206 new fully paid ordinary shares to raise around AU$2.6 million, according to a Wednesday Australian bourse filing.

The entitlement offer is partially underwritten by CPS Capital Group up to nearly AU$2 million.

Shareholders who meet certain criteria, including having an address on the register in Australia, New Zealand, the United Kingdom, Bermuda, Malaysia, and Singapore, will be able to participate in the entitlement offer in respect of their shares acquired under the placement.

If any shortfall remains after the allocation to eligible shareholders, it will be met by the underwriter and its sub-underwriters.

Zeta Resources, which has acquired a 9.99% stake in the firm under the placement, intends to take up its full entitlement under the offer, conditional on Zeta receiving Foreign Investment Review Board approval to acquire a stake above 9.99%.

The entitlement offer is expected to open on May 15 and to close on May 30.

Its shares jumped 10% on market close on Wednesday.