PERTH (miningweekly.com) – ASX-listed Deep Yellow on Monday reported that it would raise up to A$3-million in a share placement to sophisticated and institutional investors.
The company would place some 179.4-million shares, at a price of 1.7c each, to raise the capital.
The placement would be done in two tranches, with the first taking place as the satisfaction of a nonrenounceable entitlement issue shortfall. About 113.1-million shares, equating to A$1.9-million, would be placed in the first tranche.
The second tranche, consisting of 66.3-million shares, to raise A$1.1-million, would be placed under the company’s existing capacity.
Chairperson Tim Netscher said on Monday that the placement would place Deep Yellow in a sound position for the short to medium term, enabling the company to maintain its momentum by using the funds to progress its flagship Omahola project and the Tubas Sands project, in Namibia.
“We will continue to carefully monitor all expenditure to ensure we extract the maximum value from these funds and to remove the need to return to the market in the foreseeable future.”