26/08/2009 - 13:27

Extract plans $91m capital raising

26/08/2009 - 13:27

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Uranium exploration company, Extract Resources has launched a $91 million capital raising via a non-renounceable rights issue and private placement to institutional investors to accelerate exploration activities at its Rossing South project in Namibia.

Extract plans $91m capital raising

Uranium exploration company, Extract Resources has launched a $91 million capital raising via a non-renounceable rights issue and private placement to institutional investors to accelerate exploration activities at its Rossing South project in Namibia.

Close to a 20 per cent discount on the company's recently traded price will be offered on both the rights issue and the placement, each priced at $7.75 per share.

Extract managing director, Peter McIntyre said the equity raising, together with completion of the Rossing South Definitive Feasibility Study is expected to assist in developing Rossing South through the next phase.

The company's primary focus is in Namibia where its principal asset, the wholly-owned Husab Uranium Project, is located which contains two known uranium deposit areas: Rossing South and Ida Dome.

 

 

Full announcement below:

 

A$91 MILLION EQUITY RAISING BY EXTRACT RESOURCES

Extract Resources Ltd (ASX / TSX: EXT) has launched a A$91 million equity raising by way of a nonrenounceable pro-rata offer to eligible shareholders and a private placement to accredited institutional investors.

The equity raising comprises

A one for 35 non-renounceable pro-rata offer of Extract ordinary shares ("New Shares") at an issue price of A$7.75 per New Share, a 19.9% discount to the theoretical ex-rights price1, to raise A$50.7 million ("Entitlement Offer");

and

The sale on an underwritten private placement basis of 5.2 million Special Warrants ("Placement"), at an issue price of A$7.75 per Special Warrant, for gross proceeds of A$40.3 million. The Placement will be made outside of Australia, and is expected to be made mainly in Canada and the United States.

Proceeds of the Entitlement Offer and the Placement will be used to accelerate exploration activities at the Rossing South project in Namibia including accelerating and increasing the drilling programmes for Zones 1 and 2 and to extend and accelerate the regional exploration programme which will include areas of identified mineralisation located South of Zone 2. Proceeds will also be used for the Definitive Feasibility Study and for working capital and general corporate purposes.

Peter McIntyre, Managing Director of Extract, said "Rossing South continues to deliver in terms of expanding an already world class resource and the equity raising is expected to allow Extract to significantly accelerate the exploration program. This equity raising, together with completion of the Rossing South Definitive Feasibility Study is expected to assist in developing Rossing South through the next phase."

 

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