Exploration firm Energia Minerals has launched a $2.2 million capital raising plan, to fund evaluation and development of its Carley Bore uranium project in the Carnarvon Basin.
Energia said it would offer existing shareholders the opportunity to purchase one of its shares for every two shares held, at an issue price of 2.2 cents per share.
Managing director Kim Robinson said the Carnarvon Basin had the potential to emerge as the next significant frontier for uranium development, particularly considering Paladin Energy’s plans to develop its nearby Manyingee project.
“With a targeted cost reduction program already implemented across all aspects of our business, this rights issue will ensure that Energia is able to implement an active and focused exploration and development program in 2014 at Carley Bore – assisting the company in progressing to add value to its key assets,” Mr Robinson said in a statement.
“We remain extremely positive about the outlook for the global uranium sector and we believe that Carley Bore will play a very important role in the development of the Carnarvon Basin as a major centre of uranium production in Western Australia.”
At 12:30PM, WST, Energia shares were steady at 2.4 cents.