Toro Energy (ASX:TOE) has received firm commitment for a $12.3 million placement of about 23 million new fully paid ordinary shares at $0.52 per share.
Toro has also launched a share purchase plan (SPP) to raise at least $2 million at the same price as the placement.
The $57.97 million market capitalisation company will use the funds to support further development of the Wiluna Uranium Project in Western Australia.
The offer price is a 13.3% discount to the last close on 17 January 2024 and a 13.2% discount to the 5-day volume weighted average price (VWAP).
Canaccord Genuity (Australia) and Euroz Hartleys are acting joint lead managers and bookrunners to the placement.
Toro has received ‘strong’ support from offshore and domestic institutional investors.
The capital raised will be used towards a pilot plant program as part of the Lake Maitland Prefeasibility Study (PFS) and to test samples across Wiluna. It will also be used for drilling at Lake Maitland and other prospects for further metallurgical testwork.
Executive Chairman Richard Homsany says the company remains committed to developing its Wiluna Project as the global uranium markets continue to strengthen.
“As global uranium markets continue to strengthen and public sentiment and government support align, Toro remains committed to developing the Wiluna Uranium Project to maximise its value. With further work, Toro is confident its assets will emerge as attractive stand-alone mining projects and we are very much looking forward to the year ahead.”
Toro Energy is a uranium developer and explorer with projects in Western Australia, although the company’s tenure is also prospective for gold and base metals.
Write to Adam Drought at Mining.com.au
Images: Toro Energy
