PERTH (miningweekly.com) – Uranium hopeful Boss Resources has completed a A$3-million capital raise to advance activities at its Honeymoon project, in South Australia.
The ASX-listed company placed 60-million shares, priced at 5c each, to new and existing sophisticated investors. The placement was made within the company’s 15% placement capacity, and as such did not require shareholder approval.
The issue price represented a 5.7% discount to Boss’s closing price on August 8, and a 7.1% discount to the company’s five-day volume weighted average price.
Funds raised from the placement will be used to advance the Honeymoon project, as well as go towards the payment of promissory note due this year to the vendor of the Honeymoon project, and to working capital.
Boss in May this year said that the Honeymoon project would require an initial capital investment of $10-million to allow for a restart with a production of 0.88-million pounds of uranium oxide (U3O8) a year.
The Stage 1 restart will see Boss use the existing solvent extraction plant, with first production expected within 12 months of restart.
The Stage 2 ramp-up of plant capacity to two-million tonnes a year of U3O8 equivalent, using a combined solvent extraction and ion exchange system, will require a further $58-million in capital.
The Stage 3 ramp-up to 3.2-million tonnes a year of U3O8 equivalent, through the addition of further ion exchange columns, will require a further investment of $78-million.