Echelon to raise $18m for exploration

Perth-based uranium explorer Echelon Resources Ltd will raise $18 million through a placement to fund further exploration on its Queensland and Western Australian tenements.

The full text of a company announcement is pasted below

The Directors of Echelon Resources Limited are pleased to advise that the Company intends to, subject to shareholder approval, make a sophisticated investor placement of 12 million shares at $1.50 each to European and North American clients of Haywood Securities.

The issue will raise $18 million before expenses.

As previously announced, Haywood Securities has been engaged to act as the Company's exclusive lead agent for an intended listing on the Toronto Stock Exchange ("TSX") later this year. The placement is anticipated to facilitate interest in the Company ahead of its TSX listing.

Proceeds from the issue will enable the Company to expand and accelerate the exploration programs on its existing projects in Queensland and Western Australia, as well as to pursue new business development opportunities and provide general working capital.