Uranium explorer Laramide Resources (ASX:LAM) is set to ramp up project development and drilling work across the US and Australia on the back of a $12 million share placement.
The company has tapped institutional and sophisticated investors for the funds, which it plans to raise through the issue of 20 million Chess Depositary Interests (CDIs) at $0.60 per CDI.
The offer price represents a 3.2% discount to Laramide’s last closing price before the announcement of the raise of $0.62 on Wednesday 8 November.
Laramide plans to use the funds to expedite its project development work in the US and ramp up drilling at its Australian exploration assets.
Company President and CEO Marc Henderson says this next phase of Laramide’s evolution is underpinned by an emerging bull market for uranium, with spot prices touching above $70 for the first time in more than a decade.
“The fundraising will facilitate continued permitting at Laramide’s development projects in the USA and to accelerate exploration in Queensland and Australia’s Northern Territory.”
“The fundraising will facilitate continued permitting at Laramide’s development projects in the USA and to accelerate exploration in Queensland and Australia’s Northern Territory”
Bell Potter acted as Lead Manager and bookrunner to the placement, which is expected to settle on Wednesday 15 November.
Laramide’s US assets include its Nuclear Regulatory Commission (NRC)-licensed Crownpoint-Churchrock Uranium Project and its La Jara Mesa Project, both in New Mexico, and its underground La Sal Project in Utah.
While the company hasn’t released specific details of where it plans to direct the new placement funds, Laramide has previously stated that it has permits in hand to commence bulk sampling at La Sal once ‘uranium market conditions improve’.
Perhaps the perceived bull market — as touted by Henderson — could be the catalyst for this work.
In Queensland, Laramide owns the Westmore Uranium Project, which currently hosts an indicated Mineral Resource of 18.7 million tonnes at 0.089% U3O8 for 36 million pounds of contained uranium and an inferred Mineral Resource of 9 million tonnes at 0.083% U3O8 for 15.9 million pounds of contained uranium.
Write to Joshua Smith at Mining.com.au
Images: Laramide Resources
