PERTH (miningweekly.com) – Uranium developer Toro Energy will raise A$5-million through a share placement to fund further development work at the Lake Maitland project, in Western Australia.
The company has received firm commitments for the placement of more than 461.5-million new shares, priced at 1.1c each from new and existing institutional, sophisticated and professional investors.
Toro on Friday said that along with the share placement, one free attaching unlisted option, with an exercise price of 1.8c each and an expiry date of 24 months, will be issued on the basis of one option for every two placement shares subscribed for. The placement shares will be issued under Toro’s existing placement capacity, while the options will be subject to shareholder approval at a general meeting.
“Toro is pleased with the outcome of this fundraising and is delighted to welcome a number of new highly reputable investors to its register, including those with a specialist uranium focus,” said executive chairperson Richard Homsany.
“The outstanding results of the Lake Maitland scoping study provide a strong foundation for the enhanced viability of not only Lake Maitland but the entire Wiluna uranium project with further work. The consistent and continued success of our nickel exploration campaign also provides investors with a further avenue for growth in value.”
The placement funds will primarily support further development of the Lake Maitland project, the Dusty and Yandal One projects, and provide working capital for Toro.
An October scoping study into a standalone uranium and vanadium operation at the Lake Maitland project estimated that the project would have a pre-tax net present value of A$610-million and an internal rate of return of 41%, with a pay-back period of 2.5 years.
The project is expected to require a capital investment of A$270-million to support a process at a rate of 1.94-million tonnes a year, delivering an average 1.3-million pounds of uranium oxide and 0.7-million pounds of vanadium pentoxide over a mine life of 17.5 years.