Core Energy Minerals has raised A$3.025 million to fund drilling and the establishment of a maiden mineral resource at its Nova Uranium Project in Namibia’s Erongo Region, as the Australian explorer prepares to accelerate work at the Barking Gecko prospect.
The ASX-listed company said it had received firm commitments from institutional, professional and sophisticated investors for a two-tranche placement of about 504 million new shares at A$0.006 each.
The raise gives Core Energy fresh funding for drilling at Barking Gecko and work to delineate a maiden JORC-compliant resource at Nova, with part of the proceeds also allocated to working capital and transaction costs.
Managing director Tony Greenaway said the funding would allow the company to begin field activities immediately across its uranium holdings in Namibia.
“This placement ensures that Core Energy is funded to accelerate on-ground exploration across our strategic district-scale tenure in Namibia’s world-class Erongo uranium province,” Greenaway said.
“With field work commencing immediately and a strengthened capital position, we look forward to rapidly advancing our exploration program and unlocking value for all our shareholders.”
A significant portion of the new money will come from Core Energy’s substantial shareholder Jose Luis Manzano, who has committed A$1 million to the placement.
The investment will increase Manzano’s total shareholding in Core Energy to 19.7%.
Manzano is founder and president of international investment firm Integra Capital, and Core Energy described his participation as a cornerstone commitment to the raising.
Greenaway said the investment represented continued backing for the company’s strategy.
“I am pleased to acknowledge the continued backing of our substantial shareholder, Mr Jose Luis Manzano, with his significant contribution and moving his overall holding to 19.7%,” he said.
“This cornerstone commitment is a strong endorsement of our strategy and our team.”
Core Energy chairman Chris Gale, Greenaway and non-executive director David Vilensky have also committed A$50,000, A$30,000 and A$20,000 respectively, subject to shareholder approval.
The first tranche will comprise about 178.08 million shares issued under Core Energy’s existing placement capacity.
The second tranche proposes a further 326.08 million shares and requires shareholder approval.
The A$0.006 issue price represents a 25% discount to Core Energy’s last traded price of A$0.008 and an 18% discount to its 15-day volume-weighted average price of A$0.0073 up to the close of trading on 1 September.
Subject to shareholder approval, investors will also receive one free-attaching unlisted option for every three placement shares. The options will carry an exercise price of A$0.011 and expire three years after issue.
Core Energy expects to issue the first tranche of shares around 11 September, while the second tranche and associated options are expected to be issued following an extraordinary general meeting planned for mid-October.
Canaccord Genuity Australia is lead manager for the placement.
Nova gets funding boost
The placement puts Nova at the centre of Core Energy’s immediate exploration spending in Namibia.
The company said proceeds would specifically fund drilling at Barking Gecko and work towards defining Nova’s first JORC mineral resource.
Core Energy describes itself as a critical minerals explorer with assets in Australia, Brazil and southern Africa, including uranium interests in Namibia.
The latest funding gives the company dedicated capital to move Nova from exploration toward its first formal resource estimate, with the upcoming Barking Gecko drilling programme expected to provide the geological data required for that work.
