Toronto-based uranium exploration and development firm, Laramide Resources Ltd., announced today that it has secured firm commitments for a A$12.0 million placement from Australian institutional and sophisticated investors. The placement, managed by Bell Potter Securities Limited, is pursuant to s708 of the Corporations Act 2001 in Australia and is expected to close on Wednesday, November 15, 2023.
The agreement involves issuing 20,000,000 Chess Depositary Interests (CDI) at an issue price of A$0.60 per CDI. This represents a 3.2% discount to Laramide's last traded price on the ASX on Wednesday, November 8, 2023 of A$0.62. Each CDI equates to one Laramide common share and will rank equally with existing CDIs.
The funds raised from this placement will be used to fuel development projects in the United States and increase drilling at advanced exploration assets in Australia in the upcoming field season. The capital will also cover general working capital and transaction costs.
Marc Henderson, Laramide's President and CEO, expressed optimism about the company's future prospects in light of the current uranium industry bull market, where spot prices have risen to $70.00. The capital raised will also facilitate continued permitting at Laramide's American projects and expedite exploration in Queensland and Australia's Northern Territory.
Laramide Resources Ltd., specializes in uranium assets in Australia and the western United States, holding advanced uranium projects in its portfolio, including the Westmoreland project in Queensland, Australia. The closure of this agreement is subject to regulatory approvals including the Toronto Stock Exchange's sanction.
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