Elevate Uranium Ltd has strengthened its financial position with an additional N$124m (A$10m) from a single tranche placement of shares at A$042 per share.
Before this placement, Elevate’s cash reserve stood at N$88m (A$7.1m).
The ASX-listed company announced Friday that it has received binding commitments from participants who will receive one free attaching unlisted option for every two shares subscribed for the placement.
Elevate has five projects in Namibia – Koppies, Hirabeb, Namib IV, Marenica Uranium Project and Capri.
The company wants to fund the resource infill and metallurgical work and start a scoping study at the Koppies Project.
Elevate has three rigs on the ground and wants to commission two more for additional drilling to support resource growth on other projects, including greenfield targets across the company’s Namibian exploration portfolio.
The Elevate Uranium managing director, Murray Hill, said the placement adds further depth to the company register, strengthens its financial position and allows for an aggressive advance at the Koppies project.
In November 2023, Elevate updated its wholly owned Koppies Uranium Project’s JORC Inferred Mineral Resource Estimate to 48 Mlb eU3O8 – a 136% increase.
Koppies updated JORC inferred mineral resource also increased Elevate’s Namibian mineral resources by 42% to 94 Mlb eU3O8 and the company’s global resources to 142 Mlb eU3O8.
Koppies is one of the shallowest uranium resources globally, with 95% of the resource within approximately 15 metres of the surface and 50% within about 6 metres of the surface.