West Perth-based uranium explorer Scimitar Resources Ltd has completed a capital raising of $5.1 million, with Canadian company Mega Uranium Ltd subscribing for 2.25 million of the 6 million shares offered.
The Mega subscription gives it approximately a 5 per cent stake in Scimitar's post placement issued capital.
The full text of a Scimitar announcement is pasted below
Scimitar Resources Limited (SIM) is pleased to announce that the private placement to raise gross proceeds of $5.1 million through the issue of 6 million ordinary fully paid shares in the capital of the Company at an issue
price of A$0.85 has been completed.
Leading uranium exploration and development company, Mega Uranium Ltd ("Mega") has subscribed for 2.25m shares representing approximately 5% of the post placement issued capital of Scimitar. Mega is a Canadian publicly
listed resources company focusing on uranium exploration and development.
Mega already has a strong presence in Australia following takeovers of Hindmarsh Resources Limited and Redport Limited as well as an investment in Northern Uranium Limited. Mega controls a number of advanced uranium
projects in Australia featuring established resources including Ben Lomond, and Lake Maitland.
Hartleys Limited facilitated the placement to institutional and other sophisticated investors including Mega. Clients of Perth firm Barclay Wells Limited also participated in the private placement. The new shares were issued pursuant to the "excluded offer" provisions (Section 708) of the Corporations Act.
The Company will apply to ASX for quotation of the securities.
