Owing to Energy Resources of Australia’s (ERA’s) current unfavourable cash-on-hand position, the ASX-listed company has stated that it is urgently seeking an interim funding solution to pay for ongoing rehabilitation efforts at its Ranger project, in the Northern Territory.
The mine project area, which is located on Aboriginal land about 8 km east of Jabiru, covers about 79 km² and is surrounded by, but separate from, the World Heritage-listed 20 000 km² Kakadu National Park.
Uranium was mined at Ranger for almost 40 years. During that time, Ranger produced more than 132 000 t of uranium oxide. ERA is currently undertaking the rehabilitation of the Ranger project area, which has turned out to be more costly than previously estimated.
ERA had previously stated that it was reviewing all available options to ensure that the forecast increase in the cost of rehabilitation would be adequately funded.
In line with this, ERA said on Friday that it had initiated the process of engaging with its substantial shareholders in relation to a potential interim entitlement offer to raise ongoing funding for the rehabilitation of the Ranger project.
The company said that the size, price and structure of the interim entitlement offer were still to be determined. However, ERA expected to be in a position to announce details of the entitlement offer in the coming weeks.