AuKing Mining Ltd (ASX:AKN) has been given a strong show of support for its uranium strategy by raising $1.25 million in a two-stage placement to sophisticated and professional investors along with board chairman Asimwe Kabunga.
The company has received binding commitments for the capital raising with sophisticated and professional investors to raise $1.05 million while major shareholder Kabunga will contribute a further $200,000.
There will be 26.25 million shares issued at $0.04 each in the first placement stage with an additional series of free-attaching options to be issued on a 1:2 basis exercisable at 10 cents on or before December 31, 2025.
Use of funds
Proceeds of the placement will be used towards:
- Diamond drilling at the Mkuju Uranium Project in southern Tanzania;
- A possible short-term aircore/RC drilling program at Mkuju, subject to availability of a drilling rig and weather conditions;
- General working capital, and
- Payment of placement costs.
Strong investor sentiment
AuKing’s CEO Paul Williams said that off the back of recent excellent initial exploration results from the Mkuju Uranium Project, the strong current investor sentiment for uranium stocks and the prospect of further results as drilling at Mkuju continues, this was an ideal opportunity for the company to raise a small amount of additional funds that would ensure project activities continued well into 2024.
Placement details
Placement shares and options, excluding the director participation, will be issued without shareholder approval in line with the company’s existing placement capacity under Listing Rule 7.1 and 7.1a.
The shares to be issued to Kabunga (or his associated entity) together with the attaching options will be issued after approval is obtained from shareholders at an extraordinary general meeting to be convened shortly.
The company has engaged Vert Capital Pty Ltd to act as lead manager to the placement.
AuKing expects the placement shares and options to be issued as soon as possible. Those to be issued to Kabunga (or his associated entity) will be issued immediately after the proposed EGM, assuming shareholder approval is obtained.
Timing of the EGM will be known once the notice of meeting has been finalised and is ready for dispatch to shareholders.