The Australian company, Oar Resources Limited, which acquired two greenfield uranium EPLs in the Erongo region, has received firm commitments to raise N$12.3 million (A$1 million).
Oar Resources announced the acquisition of EPLs 9652 and 9725 from Bullrun Capital Inc., Cityscape Asset Pty Ltd., and Impala Consulting for N$1.5 million (A$125,000) on April 2.
Two days later, Oar Resources said it had issued share placements at A$0.002 per unit to raise A$1 million.
Under the placement, Oar will issue 500 million fully paid ordinary shares at $0.002 per share, representing a 20% discount to the closing price on April 2, 2024, and a 23% discount to the 15-day volume-weighted average price of $0.0026 per share.
CPS Capital Group Pty Ltd. acted as the lead manager and broker for the placement and will receive a fee of 6% on the placement and 50 million options with an exercise price of $0.003 and expiration three years from the date of issue.
Oar Resources wants to use the money to complete the EPLs’ acquisition in Namibia and develop the in-country exploration team in Namibia and Brazil to expedite exploration planning and activities across the two regions.
The company also said it would use the money to advance the environment clearance certificate required in Namibia before embarking on ground-disturbing exploration activities.
Funds will also allow the company to accelerate exploration planning and activity across the EPLs, including fieldwork and planning for a potential maiden drilling program.
Our Resources CEO, Paul Stephen, welcomed new investors, saying this is an exciting time for the company as it strategically diversifies and expands its portfolio with highly prospective tenements secured around the world.
“The acquisition in Namibia is significant, with both EPLs located close to a well-known uranium-enriched structural corridor and considered prospective for multiple styles of uranium mineralisation.
“This funding raised by our dedicated shareholders will take us another step closer to commencing initial exploration activity across these recently acquired Namibian tenements and early-stage reconnaissance work at the company’s REE and Uranium Projects in Brazil,” Stephen said.
The two EPLs are located in a globally recognised uranium jurisdiction, which is the world’s third-largest producer of the in-demand heavy metal.
The EPLs share boundaries with highly prospective Deep Yellow Limited’s Tumas Project1 and world-class Bannerman Energy Ltd’s Etango Project2, which are located along strike from the Husab, Rossing, Valencia, and Norasa deposits.