Toro launches share purchase plan to raise funds

PERTH (miningweekly.com) - ASX-listed uranium developer Toro Energy on Monday launched a share purchase plan to raise funds to further advance work at its Wiluna project, in Western Australia.

The miner said that eligible shareholders would be given the opportunity to purchase up to A$15 000 worth of fully paid ordinary shares, at a price of A$0.08 a share.

The company would not be issuing more than 30% of the number of fully paid ordinary shares already on issue.

“Toro is continuing to advance the Wiluna uranium project through Western Australian and federal government approvals, and anticipates government decisions by mid-2012,” said Toro MD Greg Hall.

He noted that the approvals would make the Wiluna project one of the only independently owned uranium projects around the world to advance to this stage.

“The Western Australian government continues to support uranium development, and recently the Western Australian opposition leader has stated that if a Labour government was elected, they would allow previously approved uranium mines to continue development,” he said.

Hall said that the continued drilling at the Wiluna project and the advancement of the new Theseus project was also expected to allow the definition of a Joint Ore Reserves Committee-compliant resource during the year, and would potentially provide Toro with a further pipeline uranium project.

The share purchase plan would open on February 15, and would run until March 6.

Toro also said on Monday that it had been in discussions with a number of Asia-based investor groups which were interested in entering a strategic partnership with Toro, through a cornerstone equity investment of joint venture developments.

To date, discussions have been particularly advanced with two potential investors, but Hall said that negotiations were incomplete and inconclusive, at this stage.