Photo by: Bloombeg
PERTH (miningweekly.com) – Junior explorer Boss Resources has raised A$4.3-million through a share placement to fund its acquisition of the Honeymoon uranium mine, in South Australia.
The company had initially launched a two-for-five nonrenounceable rights issue, which closed on September 28, to raise an initial A$1.37-million. The rights issue resulted in the shortfall of more than 127-million shares.
Boss on Tuesday said the company had now placed these shortfall shares, raising an additional A$1.9-million. Owing to the overwhelming demand from existing and new investors, Boss also placed an additional 68.4-million shares, raising a further A$1-million.
The funds raised under the rights issue, shortfall issue and additional placement would be used for the acquisition of Uranium One Australia, which owns the Honeymoon uranium mine.
At the start of September, Boss announced that it had entered into an agreement with Uranium One to acquire the Honeymoon project, which included an 880 000 lb/y solvent extraction plant.
Under a joint venture agreement with Wattle Mining, Boss would acquire the project for an initial A$200 000 site access fee, giving the company exclusive right to conduct the necessary due diligence.
An initial cash payment of A$2.44-million would be made, along with a A$3-million promissory note, which would be repayable within 24 months of completing the acquisition. An additional A$4-million promissory note would also be issued to Uranium One, which would be repayable within 48 months of the transaction being completed.
Upon the successful recommissioning of the Honeymoon project, Boss would also make a A$2-million cash or share payment to Uranium One on the later of a restart of operations with commercial production, or five years after the completion of the acquisition.
Some 10% of the net operating cash flow from the Honeymoon project would also be payable to Uranium One on an annual basis and would be capped at A$3-million.
The acquisition was subject to various conditions, including contractor and shareholder approvals.