25/11/2021 - 12:00

Gold, uranium explorers raise $31m

25/11/2021 - 12:00

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Elevate Uranium and Valor Resources have raised funds to advance their uranium projects, while fellow WA companies Saturn Metals and Medallion Metals are continuing their search for gold.

Gold, uranium explorers raise $31m
Medallion is continuing to explore its Ravensthorpe gold project in WA. Photo: Medallion Metals

Elevate Uranium and Valor Resources have raised funds to advance their uranium projects, while fellow Western Australian companies Saturn Metals, Magnetic Resources and Medallion Metals are continuing their search for gold.

West Perth-based Elevate is raising $11.5 million through a share placement, with some of the proceeds to fund drilling at its Koppies project in Namibia, with a view to define a maiden resource.

Funds will also be allocated to resource drilling and exploration across the company's Australian projects, which include Thatcher Soak and Oobagooma in WA.

Elevate will have a cash balance of about $17.6 million post-placement, which managing director Murray Hill said would be the company's strongest financial position.

“Demand for the placement was overwhelming, representing a strong endorsement of the company and its strategy,” he said, noting a buoyant uranium price environment.

Elevate will issue about 25.5 million shares at 45 cents each, representing a 12 per cent discount to the company’s last closing price.

Cumulus Wealth, Discovery Capital Partners and Taylor Collison are lead managers to the raising.

Fellow uranium hopeful Valor Resources has raised $5.4 million to explore two projects in Canada's Athabasca Basin, Hook Lake and Cluff Lake.

The Perth-based company issued 319 million shares at 1.71 cents each, which was a 7 per cent premium to its last traded price.

Meanwhile, Saturn Metals is aiming to upgrade the mineral resource at its Apollo Hill gold project in NSW, using proceeds from an $8 million placement.

The West Perth business has planned 50,000 metres of drilling and metallurgical testwork.

Managing director Ian Bamborough said successful drilling this year showed the potential for further discoveries at Apollo.

“In addition, this raising enables the company to fund other exciting activities in our exploration portfolio and step up our production orientated studies,” he said.

Apollo will issue about 16.6 million shares at 48 cents each – a 14 per cent discount to its last closing price – with Petra Capital and Sprott Capital Partners joint lead managers to the placement.

Further, Medallion Metals is raising $4.8 million to advance exploration across its gold projects, including its Ravensthorpe asset in WA's Goldfields-Esperance region.

Managing director Paul Bennett said the raising was needed to maintain the company’s growth ambitions.

“We are now in a strong position to maintain a permanent drill presence at Ravensthorpe and keep our outstanding team together to continue to grow the resource and test the multiple regional opportunities,” he said.

Medallion will have a cash balance of more than $8 million, post-placement.

The company will issue about 25 million shares at 19 cents each, representing a 15.6 per cent discount to its last traded price.

Canaccord Genuity is lead manager to the raising, with Argonaut as co-manager.

Magnetic Resources also launched a share placement today, with $1.4 million in proceeds to fund drilling at the company's Lady Julie and Hawks Nest gold projects in WA.

About 710,000 shares will be issued at $1.60 each, which is an 11 per cent discount to Magnetic's last closing price.

The company's shares were down 3 per cent at 3:45pm AEDT to trade at $1.55 each, while Medallion's shares were down 13.3 per cent to trade at 20 cents, Saturn's down 3.6 per cent to 54 cents, and Elevate's down 4.9 per cent to 48 cents.

Valor emerged from a trading halt this morning, with its shares unchanged at 1.6 cents.

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