Perth exploration company Black Range Minerals intends to raise $2.1 million in capital to fund its offshore projects.
Siebels Hard Asset Fund has entered into a placement agreement with Black Range and will subscribe for about 333 million shares at a price of 0.45 cents per share for a total consideration of $1.5 million.
Siebels is a Cayman Island based natural resources investment fund that has its eye on undervalued companies globally.
Black Range has also entered into an underwritten share purchase plan with Patersons Securities to raise about $600,000.
The SPP will provide existing shareholders the opportunity to participate in the current capital raising at the same price as the placement.
It represents an approximate 15 per cent discount to the average price of trading in Black Range’s shares in the last five days.
The proceeds of the placement and SPP will be used to advance mine permitting activities at the company’s Hansen/Taylor Ranch uranium project in Colorado, and to advance the commercialisation of the Ablation technology, in which the company holds a 50 per cent interest.
Black Range also intends to use the proceeds to pay US$1 million to STB Minerals for its 51 per cent interest in the Hansen uranium deposit.
The company has the right to draw down a further $1.54 million under the working capital facility that has been in place with its major shareholder Azarga Resources.
Black Range last traded at 0.5 cents per share at 10:25am WST.
