Uranium explorer Deep Yellow and Rare earths hopeful Pensana Metals have raised $9 million and $5 million, respectively, as the two companies seek to advance their projects in Africa.
Subiaco-based Deep Yellow raised the funds via a share placement at an issue price of 31 cents per share, which is a 7.4 per cent discount to its closing price on May 30.
The company said a share purchase plan would be offered to eligible shareholders on or about June 7 2019 to raise up to a further $2.5 million on similar terms to the placement.
It said the funds would be put towards expanding the existing uranium resource base of its Namibian tenements and to evaluate the best approach to advance its project acquisition growth strategy by taking advantage of the current uranium downturn.
Aitken Murray Capital Partners acted as lead manager to the placement.
“Our consistent, differentiating strategy for growth, at a time when the uranium sector is in downturn, has resonated - attracting quality institutional and long-term investors into this very well received placement,” he said.
The placement was undertaken at 2 cents per share.
It said the funds would be applied to the execution of a pre-feasibility study by Wood Group into the development of the Longonjo rare earths project in Angola, which will be reported in September.
“Our ambition (is) to capitalise on Longonjo’s grade and infrastructure advantages to become the world’s next major supplier to this critical sector,” he said.
Shares in Deep Yellow were down 1.5 per cent at 12.55pmA EST to trade at 33 cents each.
Shares in Pensana were up 4.6 per cent at 12.25pm AEST to trade at 2.3 cents each.