Baraka Energy & Resources shareholders don’t seem too happy with the company at the moment.

Baraka (ASX:BKP) launched a $1.5 million rights issue to shareholders in August and today said only 8 per cent was taken up.

The company raised a total of $119,809.25.

Baraka has traded higher than 0.1c only once in the last 12 months — in February it briefly hit 0.2c. The company still has a market cap of $3.71 million though.

Stockhead has reached out to the company for comment.

The deal was a right issue of two shares for every three held, at a price of 0.1c each, to fund a project in the Philippines and one in the Northern Territory.

But it’s the iron sands venture in the Philippines that may have soured shareholders’ joy in the company.

It’s been the subject of a five year legal battle.

Baraka bought the project in 2012, and not one but two legal actions were launched by the sellers as a result of actions by previous directors of CIS which Baraka funded. Those directors have since been removed.”

The lawsuits, which Baraka won, still meant that it had to keep funding the venture in order to keep it.