THE BOURSE WHISPERER: Vimy Resources (ASX: VMY) has raised gross proceeds of $3.9 million through a placement to institutional and sophisticated investors.
Vimy Resources said the funds would strengthen the company’s balance sheet, allowing it to undertake an exploration program at the Alligator River project in the Northern Territory, as well as to update the Definitive Feasibility Study at the Mulga Rock project in Western Australia.
The company’s 2019 field season at Alligator River confirmed a pipeline of advanced exploration targets, including Such Wow and Angularli West.
Vimy considers the Wallaby Ridge, Inspiration and Southern Flank exploration greenfields targets support further exploration, especially given the excellent geochemical results it achieved at Southern Flank that the company said had confirmed its geological models and exploration methods and highlight Jabiluka-style mineralisation targets.
The proceeds of the raising will be used to complete additional field work including geochemical analysis and drilling at these targets with the company also carrying out environmental baseline studies to streamline permitting.
At the Mulga Rock project, Vimy completed a high-level review of the January 2018 DFS in Q2 2019 that identified potential capital and operating cost savings that could lower capital cost and firm up stronger project economics.
Vimy believes the outcomes from the preliminary work justify it undertaking a more thorough review of the DFS.
The raised funds will also be used to advance offtake contract(s) and project finance.
A supporting Share Purchase Plan (SPP) is to be open to eligible Vimy Resources’ shareholders who will be invited to invest up to a maximum of $30,000 per shareholder to grab their share of approximately 60 million new shares at five cents per share to raise an additional $3 million.
“It’s great to see so many investors, both new and existing, who appreciate the high quality of our portfolio,” Vimy Resources managing director and CEO Mike Young said in the company’s announcement to the Australian Securities Exchange.
“The outlook for uranium continues to improve, it feels like the whole nuclear industry has made a significant turn for the better.
“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 now much more dialogue around nuclear energy’s role.
“Following on from the excellent announcement on 1 October 2019, the team can’t wait to commence the next exploration program at the Alligator River project.
“The geochemistry results confirmed Vimy’s geological models and exploration methods and highlighted the exciting Jabiluka-style mineralisation targets.”