22nd Nov 2016 09:38
LONDON (Alliance News) - URU Metals Ltd on Tuesday said it has raised GBP640,000 in a placing of 160.0 million shares at 0.40 pence per share.
Shares in URU were down 18% at 0.450p on Tuesday morning. Prior to the placing, there were 329.0 million URU shares in issue.
The base metals and uranium miner said the proceeds will be applied to progress the work programme for its South African Zebediela nickel project, including drill testing potential extensions of the nickel mineralisation and infill drilling.
URU said confirmatory drilling and metallurgical test work on new and existing holes are intended to generate sufficient data to update the existing preliminary economic assessment, to produce an updated high level project internal rate of return and net present value.
Under the placing, URU's largest shareholder Niketo Co Ltd has agreed to subscribe for 20.0 million placing shares. Niketo previously held a 21.4% stake prior to the transaction.
URU said it has also been informed that two of its directors, Chairman David Subotic and Chief Executive John Zorbas, each intend to subscribe for 12.5 million new shares on the same terms of the placing, following the announcement of the placing.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Uru Metals