Evolution Energy Minerals (ASX:EV1) is set to conduct a fully underwritten pro-rata renounceable entitlement offer of new shares at an offer price of AU$0.01 per new share to raise around AU$1.5 million, before costs, according to a Thursday Australian bourse filing.

The new shares will be offered on a ratio of two new shares for every five shares held and will include one free attaching new option for every new share, exercisable at AU$0.02 with a three-year expiry.

It will use the proceeds for general working capital purposes, payments to creditors, and development and exploration of the company's projects.

The offer is being partly underwritten by Mahe Capital.

Shares of the company rose 8% in recent Thursday trade.