PERTH (miningweekly.com) – Uranium developer Toro Energy has executed a binding unitisation agreement with investor The Sentient Group, confirming a further A$10-million investment in the Wiluna uranium project, in Western Australia.
At the start of the week, Toro announced that Sentient had agreed to subscribe for 125-million new fully paid Toro shares, at a price of 8c each, for a total investment of A$10-million.
The investor also agreed, in principle, to an additional A$10-million project level investment to enhance and optimise the process design, project configuration and operating and capital cost structure for the Wiluna project.
Based on mining four deposits, the Wiluna project was expected to have a mine life of 16 years with average production of two-million pounds of uranium oxide (U3O8) a year, for the first ten years of operation.
Total production over the life-of-mine would reach 30.2-million pounds U3O8.
Toro said on Tuesday that the company would now undertake a share placement to sophisticated investors, and would also offer existing shareholders the opportunity to participate in a share purchase plan, on the same pricing terms as the placement.