Uranium explorer Laramide Resources (ASX:LAM) has completed a $12 million placement to accelerate the development of its projects in the US and ramp up drilling in Australia.
The $171.76 million market capitalisation company says the funds were raised through the issue of 20 million chess depository interests (CDI) for $0.60 per share, with each new CDI ranking equally with existing CDIs on issue. Each CDI also represents a beneficial interest in one common share of Laramide.
The price represents a 3.2% discount to the company’s last traded price on the ASX on 8 November 2023 of $0.62, as announced on 10 November 2023.
The placement was fully subscribed with funds to be used to ramp up drilling at its exploration assets in the Northern Territory, Australia, during the next field season, the development of its projects in the US, and general working capital.
Bell Potter Securities acted as lead manager and book-runner to the placement.
Laramide Resources President and Chief Executive Officer (CEO) says the placement represents a phase of Laramide’s evolution, which is underpinned by the new uranium ‘bull market’.
“We are excited to be moving into this phase of Laramide’s evolution underpinned by the uranium industry which appears to have entered a new bull market with spot prices rising above $70.”
Laramide Resources is focused on the exploration and development of ‘high-quality’ uranium assets in Australia and the western US.
The company’s portfolio comprises 5 uranium projects in districts with historical production or superior geological prospectivity. The Westmoreland Project in Queensland, Australia, represents one of the largest uranium development assets held by a junior mining company.
As of 30 September 2023, Laramide Resources had C$1.648 million cash and cash equivalents at hand, although the company will add $12 million through the aforementioned placement.
Write to Adam Drought at Mining.com.au
Images: Laramide Resources