PERTH (miningweekly.com) – Uranium developer Vimy Resources is hoping to raise A$17-million through a share placement to institutional and sophisticated investors, to fund a bankable feasibility study (BFS) for its Mulga Rock project, and to fund drilling at Alligator River.

The ASX-listed Vimy will issue 100-million shares, at a price of 17c each, under the company’s existing placement capacity, with the offer price representing a 24.4% discount to Vimy’s last closing price, and an 11.3% discount to the company’s 15-day volume weighted average share price.

“The past few days have been exceptionally volatile for the global uranium sector, given the events on Friday in Ukraine. The strategic value of uranium deposits in Tier 1 jurisdictions has never been more apparent and there are few near term development opportunities that meet those criteria,” said Vimy MD and CEO Steven Michael.

“Vimy’s major shareholders and new institutional investors recognise the growing strategic value of both the Mulga Rock and Alligator River projects in Australia and Vimy’s development plans. The long-term fundamentals for uranium remain robust and this is reflected in the strong support from investors.”

Michael said that the capital raising allows Vimy to be fully funded into 2023, when the company expects to have completed the BFS at Mulga Rock and commenced additional early works for project development.

Vimy will also undertake the first major drilling programme since 2019 at Alligator River in the Northern Territory, with the aim of increasing the existing high-grade Angularli resource of 26-million pounds at 1.3% uranium oxide.

“Having a strong balance sheet allows Vimy to approach the uranium contracting cycle in a much more strategic manner. Also, the potential to establish two uranium projects in Australia at this time of heightened geopolitical uncertainly cannot be underestimated,” said Michael.