Tasman Resources (ASX:TAS) will raise up to AU$3.7 million through a one-for-one renounceable entitlement offer priced at AU$0.02 per share to fund drilling at its Parkinson Dam project in South Australia, according to a Friday filing with the Australian bourse.

Participants will also receive one free attaching option for every two new shares, exercisable at AU$0.05 and expiring in three years, the filing said.

The company will also issue 23 million shares to settle outstanding director and management fees and 500,000 unlisted options to a consultant, following shareholder approval.

Normal trading of post-consolidation shares will resume on May 14.