Australian Securities Exchange-listed Elevate Uranium, with assets in Namibia and Australia, has announced a placement of shares to raise N$125 million.
The uranium exploration company has reported strong demand for the placement at A$0.32 per share, receiving support from domestic and offshore institutional investors, including specialist uranium and natural resources funds.
The financial injection according to Murray Hill, Managing Director of Elevate Uranium,
will enable the company to aggressively advance its flagship Koppies project in Namibia and explore other projects in Namibia and Australia.
“The placement adds further depth to our register, strengthens our financial position, and allows us to press on aggressively to advance our flagship Koppies project in Namibia and explore our other projects in Namibia and Australia,” he said.
Elevate will concentrate on resource infill and expansion drilling, conduct metallurgical test work, and initiate a scoping study at the Koppies project.
Two additional drill rigs will be commissioned to execute high-impact drilling programs, increasing the total number of operational drill rigs in the Namibian portfolio to five.
“In an increasingly buoyant uranium price environment, we will have five drill rigs operating in Namibia alone,” added Hill.
Upon completion, the placement is expected to bolster Elevate Uranium’s balance sheet, providing a cash balance of approximately $17.1 million (before costs).
Discovery Capital Partners Pty Ltd and Cumulus Wealth Pty Ltd serve as Joint Lead Managers for the placement and will be remunerated with a fee of six percent on the funds raised.
Elevate Uranium, a uranium exploration company with significant resources in Namibia and Australia, is actively making new discoveries through exploration programs.
