Toro Energy (ASX:TOE) has received firm commitments to raise $4.5 million via a placement to support further development of the Lake Maitland Project.
Canaccord Genuity Limited acted as lead manager and bookrunner to the placement.
The $52.3 million market capitalisation company will issue 450 million new fully paid ordinary shares at $0.01 per share, together with a free-attaching listed option with an exercise price of $0.015.
This comes alongside a 24-month term from the date of issue on the basis of one option for every 2 placement shares subscribed for and issued.
Directors of the company may participate in the placement up to $250,000, subject to the receipt of prior shareholder approval.
Toro says the placement offer price represents a 16.7% discount to its last close on 6 September 2023 and a 15.6% discount to its 5-day volume weighted average price (VWAP).
Funds from the placement will be primarily used towards the development of Lake Maitland, alongside providing working capital for Toro.
The company says the funds raised will support a Scoping Study extension and resource drilling to upgrade the vanadium resource, as well as a pilot plant program as part of the Lake Maitland Prefeasibility Study (PFS).
Commenting on the capital raise, Toro Energy Executive Chairman Richard Homsany says: “Toro is pleased with the outcome of this fundraising and is delighted to welcome new highly reputable investors to its register and increased investment from existing shareholders.
“Toro is enthusiastic about advancing its potential tier-one asset in Western Australia – the world-class Wiluna Uranium Project“
On behalf of the board, we would like to thank the lead managers and all investors who supported the transaction. Toro is enthusiastic about advancing its potential tier-one asset in Western Australia – the world-class Wiluna Uranium Project.
Toro also owns the high-quality Dusty Nickel Project in close proximity. These projects both have considerable upside and unlocked value. With further work, Toro is confident its assets will continue to emerge as stand-alone mining projects.”
Toro Energy is an ASX-listed uranium developer and explorer with assets in Western Australia. The company’s tenure in Western Australia is prospective for gold and base metals.
Write to Aaliyah Rogan at Mining.com.au
Images: Toro Energy