Sultan Resources (ASX:SLZ) will raise up to AU$1.2 million through a non-renounceable entitlement offer of one new share for every one share held at AU$0.005 apiece, according to a Monday filing with the Australian bourse.

The company will issue a maximum of 231.5 million shares under the offer, which is being made to all shareholders on its register on Thursday, with a registered address in Australia or New Zealand, the filing said.

Proceeds will be used to fund exploration expenditure, project assessment, and working capital, per the filing.