Core Energy Minerals (ASX:CR3) is conducting a placement to raise $3.7 million to fund exploration across its projects in South Australia, Brazil, and Namibia.
Under the two-tranche placement, which has already received firm commitments, participants will be able to purchase shares at $0.019 per share, which represents a 10% discount to the last price of $0.021.
Subject to shareholder approval, participants will receive one free attaching option for every share issued, exercisable at $0.035 within two years.
In addition, several company directors have committed to invest $220,000 in the second tranche of placement, subject to shareholder approval.
GBA Capital acted as lead manager to the placement.
Alongside using the funds for exploration activities across its assets, Core Energy intends to use the cash raised towards repaying a short-term loan and for general working capital.
Chairman Chris Gale says the company is now in a strong financial position to begin comprehensive exploration in South Australia and Brazil.
“We are excited to get on the ground and start drilling at the Cummins Project in South Australia, and undertake further works to generate drill targets at our uranium portfolio in Brazil and Namibia,” Gale says.
Earlier this year, the company entered into option agreements to acquire the Cummins and Harris Greenstone uranium projects in South Australia.
The region of South Australia in which the assets are situated hosts several major operating uranium mines, including BHP’s (ASX:BHP) Olympic Dam Mine, Boss Energy’s (ASX:BOE) Honeymoon Project, and Heathgate’s Four Mile Mine. Alligator Energy (ASX:AGE) is also currently advancing its Samphire Uranium Project.
Core Energy’s Brazilian projects cover a combined area of 800km2 of uranium and rare earths prospective ground across Paraiba, Parana, Goiás, and Rio Grande do Sul.
Meanwhile, the company’s Namibian assets, Gemsbok and Oryx, sit within the highly prospective Erongo region.
Write to Aaliyah Rogan at Mining.com.au
Images: Core Energy Minerals
