PERTH (miningweekly.com) – ASX-listed Vimy Resources has announced a more than A$20-million capital raise to progress work at its Mulga Rock and Alligator River projects, in Western Australia and the Northern Territory, respectively.
The company has received firm commitments from new and existing domestic and international institutional and sophisticated investors to raise A$18.5-million in a share placement.
Some 168.2-million shares will be placed at a price of 11c each, representing an 18.5% discount to Vimy’s last closing price, and a 21.9% discount to the company’s five-day volume weighted average share price.
“Many investors share our view that Vimy is the most leveraged uranium play in the market. I’d like to welcome all new shareholders to the register and thank those who have followed, or increased their holding,” said Vimy MD and CEO Mike Young.
In addition to the share placement, Vimy will also undertake a share purchase plan (SPP), allowing eligible shareholders to invest up to A$30 000 worth of additional shares in the company.
The SPP is aimed at raising a further A$3-million.
“The raise allows us to advance early works at the Mulga Rock project in Western Australia and to continue our exploration programme at the Alligator River project in the Northern Territory. Importantly, a strong balance sheet allows Vimy to approach the coming uranium contracting cycle in a much more strategic fashion,” said Young.
“Global uranium equities have surged over 300% since late October, with Vimy’s share price having tripled. The growing positive sentiment for nuclear clean energy has been the catalyst for this growth. Vimy is in a unique position to capitalise on the supply shortage by progressing the Mulga Rock project into development, where our first stage all-in sustaining cost is less than the uranium spot price.”