West Perth-based minerals explorer Murchison United NL aims to raise $6.6 million through a placement to fund exploration of its uranium and copper projects in Australia and West Africa, the company announced today.
The full text of a company announcement is pasted below
The Directors of Murchison United NL are pleased to advise that the Company has reached in-principle agreements with Hartleys Limited and DJ Carmichael Pty Ltd to raise up to A$6.6 million through the issue of up to 60 million ordinary shares at an issue price of 11 cents per share.
The issue is being undertaken in two tranches, with the first tranche comprising 40,876,662 shares at A$0.11 per share placed pursuant to the Company's 15% placement authority and the second tranche of up to 19,123,338 shares at A$0.11 per share placed subject to shareholder approval at a general meeting of shareholders, in respect of which a notice of meeting will be forwarded to shareholders shortly.
The funds raised through the placement will be used by Murchison to progress its uranium and copper projects which may include:
- Exploration and drilling programmes for the Company's extensive portfolio of uranium exploration projects comprising some 13,600 sqkm of highly prospective tenements in Mauritania and Guinea, West Africa;
- Pursuing a planned drilling programme at its Millenium copper project in the Cloncurry region of Queensland, Australia;
- Funding Murchison's share of the works programme being developed with its joint venture partner, Aditya Birla Minerals, for its 50% interest in the Maroochydore copper project in Western Australia; and
- The ongoing investigation of other resource opportunities in Australia and internationally.
Commenting on the strong level of support for the placement, Mark Reilly, Managing Director of Murchison, stated: "We are delighted with the strong interest in this placement which will allow the Company to aggressively progress its existing projects and its ongoing appraisal of new projects."
Application will be made to the AIM market of the London Stock Exchange ('AIM') for admission to trading of these ordinary shares.
