Skeleton Coast Uranium is seeking up to C$5 million through a private placement to fund exploration and development across five uranium exploration licences covering about 610 km² in Namibia’s Erongo Region.
The Canadian-listed explorer announced on Monday that it plans to issue up to 33.33 million units at C$0.15 each, with the proceeds earmarked partly for continued exploration and development work in Namibia.
The financing is significant for the company’s Namibian programme because Skeleton Coast must spend a combined C$5 million on exploration across the five Exclusive Prospecting Licences (EPLs) by June 2028 under its option agreements.
The amount sought under the new placement therefore matches the exploration expenditure commitment attached to the five Namibian licences. However, the company has not said it will spend the entire C$5 million raised on the licences. Part of the proceeds will also fund general working capital.
Skeleton Coast holds options to acquire controlling interests of between 70% and 75% in EPL8617, EPL9727, EPL8208, EPL9872 and EPL9873.
Together, the licences cover about 610 km² and are concentrated around Namibia’s established uranium-producing region, including areas near the Rössing, Husab and Langer Heinrich mines.
The company’s position around existing uranium operations forms a major part of its exploration strategy. However, proximity to producing mines does not establish that its licences contain economically recoverable uranium deposits.
EPL8617 covers about 10,491.5 hectares and lies approximately 18km east of Rössing and 17km east of Husab.
Skeleton Coast says the licence lies along the projected north-eastern continuation of the Khan Syncline, a regional geological structure associated with the area containing the two mines.
The company is targeting uranium mineralisation associated with alaskitic granite-pegmatite sheets and veins intruding Damara metasedimentary rocks.
EPL9727 covers approximately 12,081 hectares and lies about 25km to 30km south-east of Husab and 20km to 25km east of Rössing.
Skeleton Coast says the licence occurs within the central zone of the Damara Orogen, where metasedimentary rocks of the Nosib and Swakop groups have been intruded by leucogranitic and alaskitic bodies, some of which are uraniferous.
The company’s other three licences are concentrated around Langer Heinrich.
EPL8208 covers approximately 7,840.7 hectares and shares its southern boundary with the mining-licence area containing the Langer Heinrich uranium mine.
The proximity gives Skeleton Coast exploration ground immediately adjoining an established uranium operation, but the company has yet to establish a mineral resource on EPL8208.
EPL9872 and EPL9873 together cover about 30,560 hectares, approximately 15km north of Langer Heinrich.
Skeleton Coast says the two licences contain similar drainage and calcrete formations to those associated with uranium mineralisation elsewhere in the area.
Historical radiometric work is also reported to have identified anomalous areas over river sediments, with carnotite occurring in joints.
The company cites historical values of up to 260g/t U3O8, but cautions that information relating to uranium mineralisation across its concessions is historical and unverified. The figure should therefore not be treated as a current exploration result or mineral resource.
Under Monday’s proposed financing, each C$0.15 unit will comprise one Skeleton Coast common share and half of one share-purchase warrant.
Every whole warrant will allow its holder to purchase another Skeleton Coast share for C$0.20 during 24 months.
The company may also pay finders’ fees to eligible third parties that introduce investors to the placement.
Shares and warrants issued through the transaction will be subject to a four-month-and-one-day resale restriction, while completion of the financing remains subject to TSX Venture Exchange approval.
Skeleton Coast has not disclosed in the announcement how the Namibia portion of the proceeds will be divided among the five EPLs, what exploration work will be undertaken first or when field programmes funded by the placement are expected to begin.
