Elevate Uranium Ltd. has received binding commitments for a two-tranche placement of fully paid ordinary shares to raise US$25 million at US$0.325 per new share.
The money is for constructing and operating a U-pgrade™ demonstration plant and completing a Koppies Uranium Project scoping study.
The company also received strong support from one of the strategies of leading Australian fund managers, Paradice Investment Management Pty Ltd.
Paradice has committed to subscribe for new shares in the placement, resulting in a pro forma holding of 9.9% (~US$12.4 million) in Elevate Uranium on completion of the offer.
Discovery Capital Partners, Cumulus Wealth, and Wallabi Group were joint lead managers for the placement.
Elevate Uranium managing director Murray Hill said the demand for the US$25 million placement was strong.
Hill said seeing such a tangible endorsement allowed the company to aggressively advance the flagship Koppies Uranium Project in Namibia.
He added that the placement strengthens the company’s financial position and furthers the register, attracting significant institutional support.
“Notably, we are pleased to welcome Paradice Investment Management Pty Ltd to the register, who will become a substantial holder in the company priority is the development of our Koppies Uranium Project, with a key milestone being the construction and operation of a U-pgrade™ demonstration plant to validate the capital and operating costs of the process continuously and at scale,” Hill said.
He further said they are very confident in the value U-pgrade™ can deliver to the project and look forward to presenting the benefits to shareholders in further development and technical studies.
“We also continue exploring our other projects in Namibia and Australia, with approximately 100,000 m of drilling planned. In an increasingly buoyant uranium price environment, we are excited about the next phase for the company and look forward to sharing our future progress with new and existing Elevate Uranium shareholders,” Hill added.
