PERTH (miningweekly.com) – Uranium developer Boss Resources will raise A$15-million in a share placement to fund ongoing technical process optimisation studies and exploration at the Honeymoon project, in South Australia.
The single tranche share placement will consist of some 225-million shares, priced at 6.7c a share, with Boss having received firm commitments from institutional and sophisticated investors.
The placement price represents a 6.9% discount to Boss’ last closing price on September 28, and a 9.9% discount to its five-day volume weighted average share price.
The shares will be placed under Boss’ existing placement capacity, and will not require shareholder approval.
“We are pleased with the strong support received from Australian and global institutions including a broad range of existing and new investors. Proceeds from the placement secure the company’s first mover advantage as we progress our enhanced feasibility study and continue towards a Honeymoon restart decision,” said Boss MD and CEO Duncan Craib.
Boss in September engaged GR Engineering to evaluate the replacement of existing solvent extraction columns on the Honeymoon site, and initial results have indicated the potential for this to substantially increase the production profile and reduce operating costs.
These findings will be incorporated into the enhanced feasibility study, scheduled for delivery in the first half of 2021.