PERTH (miningweekly.com) – ASX-listed Elevate Uranium, previously known as Marenica Energy, will raise A$11.5-million in a share placement to institutional, sophisticated and professional investors.
The company on Friday said it had received firm commitments for the placement of more than 25.5-million shares, at a price of 45c each, to raise A$11.5-million.
The issue price represented an 11.8% discount to the company’s last closing price on November 22, and an 18.6% discount to its five-day volume weighted average share price.
“Demand for the placement was overwhelming, representing a strong endorsement of the company and its strategy,” said MD Murray Hill.
“We are pleased to welcome a number of new prominent institutional shareholders to the share register and we would also like to thank existing shareholders for their ongoing support of the company. This round of funding places Elevate Uranium in the strongest financial position in the company’s history, and we look forward to aggressively exploring our projects in Namibia and Australia, with the aim of continuing to deliver shareholder value.
“In what we believe to be an increasingly buoyant uranium price environment, we look forward to updating the market as results materialize across our geographically diverse tenement portfolio.”
Funds will go towards resource definition drilling at the Koppies project, in Namibia, and the assessment of project economics, resource drilling and additional exploration across Elevate’s Australian exploration projects.