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- Vimy Resources (VMY) raises $17 million from institutional investors via share placement for its Mulga Rock Bankable Feasibility Study (BFS) and Alligator River drilling program
- Vimy will issue 100 million shares at an issue price of 17 cents per share
- All new shares will rank equally with existing shares
- The company marks March 16 as the expected date of ASX quotation of the placement shares
- Vimy shares are down 2.22 per cent, trading at 22 cents per share
Vimy Resources (VMY) has received firm commitments for an injection of $17 million via a share placement from institutional investors to fund its Mulga Rock Bankable Feasibility Study (BFS) and Alligator River drilling program.
The company said the placement was well supported by existing shareholders and several new Australian and overseas institutional investors despite recent events that has impacted the global uranium sector.
Vimy will issue 100 million shares at an issue price of 17 cents per share, representing approximately 9.5 per cent of the shares currently on issue at a 24.4 per cent discount to the last closing price of 22.5 cents on March 3 and a 11.3 per cent discount to the 15-day volume-weighted average price of 19.2 cents as of March 3.
All new shares will rank equally with existing shares. Morgans Capital and Euroz Hartleys are acting as joint lead managers and bookrunners.
“The past few days have been exceptionally volatile for the global uranium sector, given the events on Friday in Ukraine,” said Managing Director and CEO Steven Michael.
“The strategic value of uranium deposits in Tier 1 jurisdictions has never been more apparent and there are few near term development opportunities that meet those criteria.
“The capital raising allows Vimy to be fully funded into 2023, when the company expects to have completed the Bankable Feasibility Study at Mulga Rock and commenced additional early works for project development.
“Having a strong balance sheet allows Vimy to approach the uranium contracting cycle in a much more strategic manner. Also, the potential to establish two uranium projects in Australia at this time of heightened geopolitical uncertainty cannot be underestimated.”
The Mulga Rock Project, 100 per cent owned by Vimy, is one of Australia’s largest undeveloped uranium resources, located 290km north-east of Kalgoorlie in Western Australia. Alligator River is an exploration prospect within the noted uranium district in the far north of the Northern Territory.
Vimy marks March 16 as the expected date of ASX quotation of the placement shares.
The company’s shares were down 2.22 per cent, trading at 22 cents at 1:05pm AEDT.
