23/10/2019 - 13:32

Vimy to raise $6.9m

23/10/2019 - 13:32

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West Perth-based Vimy Resources has announced commitments to raise $3.9 million through a share placement and up to $3 million through a share purchase plan to fund the development of its uranium projects in Western Australia and the Northern Territory.

Vimy to raise $6.9m
Vimy says capital raised will go towards funding for its uranium projects in WA and the NT.

West Perth-based Vimy Resources has announced commitments to raise $3.9 million through a share placement and up to $3 million through a share purchase plan to fund the development of its uranium projects in Western Australia and the Northern Territory.

The company said capital raised would be used to strengthen its balance sheet and to update the 2018 definitive feasibility study undertaken at the Malga Rock project in WA, as well as undertake an exploration program at the Alligator River project in the NT.

Vimy Resources will issue 78 million ordinary shares at an issue price of 5 cents per share, representing approximately 14.9 per cent of the shares on issue.  

Morgans Financial and Euroz Securities are acting as joint lead managers and bookrunners, together with Bacchus Capital Advisers acting as financial adviser to the placement.

The share purchase plan will offer up to $30,000 worth of shares also at an issue price of 5 cents per share to eligible shareholders in Australia and New Zealand, with Morgans Financial acting as lead manager.

Vimy Resources managing director Mike Young said the outlook for uranium continued to improve, with many new and existing investors in the company.

“Owing to the increased rhetoric around the ‘climate emergency’ and the demonstrable failure of industrial scale renewable energy to significantly reduce greenhouse gas emissions, there is much more dialogue around nuclear energy’s role,” he said.

In June, Vimy also raised $1.8 million through a placement at 5 cents per share.

Shares in Vimy Resources were down 13 per cent to trade at 53 cents per share, as at 3:35 AEST.

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