Base metals and uranium exploration and development company URU Metals announced on Monday that it has raised £0.77m from institutional and other investors through a placing of 171,111,110 new ordinary shares
at 0.45p per share.
The AIM-traded firm said the placing proceeds will be used to advance the Zebediela Project, in anticipation of positive results from the drill testing programme which was due to commence this month.
It said the aim of the scope of work is to increase the confidence on the potential magnetite resource that has been identified in the oxide and sulphide zones of the orebody.
URU said the proceeds would also be used to re-commence work on the Burgersfort Project, in which it last invested in late 2012.
The company owns 50% of the Burgersfort nickel project, and its joint venture partner will be co-investing in the Burgersfort Project to maintain its equity interest. The Burgersfort Project, which is located in the Mpumalanga Province of South Africa, has the possibility of being the twin sister project to the Zebedelia Project. Previous exploration of this site by Goldfields and Falconbridge identified several shallow disseminated nickel targets and three deeper massive sulphide nickel targets where diamond drilling was undertaken. Work on the property will be advanced initially with metallurgical work by SGS following additional diamond drilling. The results of the metallurgical work will be used in the scoping study; and
"This placing, at a 12.5% premium to the placing price in November 2016, represents a further show of confidence by investors in the company's assets," said URU Metals CEO John Zorbas.
"The new funds raised will allow the company to advance the Zebediela nickel project, and also allow it to re-commence work on its sister nickel project, Burgesfort, and also consider new acquisition or investment opportunities.
"We expect the next six months to be a time of significant progress and development for the company and its project portfolio and look forward to updating shareholders with key milestones and regular news over this period."