THE BOURSE WHISPERER: Marenica Energy (ASX: MEY) completed a capital raising for a total of $1.6 million.
Marenica Energy completed the placement of approximately 16 million fully paid ordinary shares at an issue price of 10 cents per share plus around 16 million free attaching options, expected to raise an approximate total of $1.6 million.
The company explained the options will be granted on the basis of one option for every share subscribed and have an exercise price of 17 cents per share, exercisable within two years.
The placement was completed to sophisticated and new institutional shareholders with Patersons Securities Limited as lead manager.
Marenica said the funds raised will be applied to fund exploration activities and working capital, including to continue to explore Marenica’s Namibian uranium tenement portfolio and, its extensive tenement position in the Erongo region.
Marenica has been granted five new tenements in the Erongo region and it plans to progressively explore each tenement as soon as possible.
Drilling has commenced on the first of those tenements, being EPL 6987, known as Koppies.
The company also intends to advance its Australian uranium projects, being the Angela, Thatcher Soak, Minerva and Oobagooma project areas and Joint Venture holdings in the Bigrlyi, Malawiri, Walbiri and Areva JV, subject to completion of their acquisition from Optimal Mining Limited.
The company will also continue to assess the application of its patented U-pgrade™ beneficiation process to third party assets.
“Over the past 12 months, we have assembled an impressive portfolio of tenements and in the near-term, we expect to have the largest uranium tenement holdings in Namibia,” Marenica Energy managing director Murray Hill said in the company’s announcement to the Australian Securities Exchange.
“We are excited about the potential of the drilling which has recently commenced on EPL 6897 in Namibia and the expected extensions of that drilling into our tenement applications.
“Marenica’s recent counter-cyclical agreement to purchase high-grade uranium resources in Australia, averaging 859ppm U3O8, will increase our uranium resources by 48 million pounds U3O8, when and subject to the expected completion of the acquisition in September.
“Following completion of the acquisition, Marenica will have one of the largest uranium resource inventories of ASX-listed companies, diversified by location and with a revolutionary uranium beneficiation process.
“Based on this, Marenica is set up for an expected turnaround in the uranium sector.
“Marenica continues its exciting phase of development in the uranium space.”