Vimy Resources bags $30M funding package

THE BOURSE WHISPERER: Vimy Resources (ASX: VMY) is set to raise $5 million through a placement of 16.67 million shares at 30 cents per share to Resource Capital Fund.

On top of the placement, RCF has also conditionally offered to provide an additional $25 million of funding in the form of a royalty and bridging loan.

Vimy anticipates the $5 million proceeds from the placement will enable it to complete a pre-feasibility study on the company’s 100 per cent-owned Mulga Rock uranium project (MRUP) northeast of Kalgoorlie in Western Australia.

The pre-feasibility study is expected to be delivered in Q3 2015.

Vimy has accepted RCF’s in-principle offer of additional funding of $25 million, comprising:

$10 million cash in exchange for a 1.15 per cent royalty on all revenue from the MRUP; and

A $15 million, unsecured bridging loan with a 31 March 2017 repayment date (subject to the occurrence of accelerated repayment events).

“We are very happy to have RCF’s support for the Mulga Rock uranium project,” Vimy Resources CEO and managing director Mike Young said in the company’s announcement to the Australian Securities Exchange.

“The recently released Scoping Study confirmed our belief that we have one of Australia’s best undeveloped uranium projects, viable at today’s long term pricing.

“RCF’s funding package will provide the funds we need to complete our studies and secure project financing for the MRUP.”