The uranium explorer Laramide Resources (TSX: LAM, FSE: L4RA, WKN: A1H8DW) will soon be able to look forward to 12.0 million Australian dollars in new liquid funds. This is because institutional and experienced private investors Down Under have given firm commitments to participate in the announced private placement, which is expected to generate corresponding gross proceeds before costs.
20,000,000 Chess Depositary Interersts (CDI) will be issued at a unit price of 0.60 Australian dollars (AUD). Compared to the last share price of AUD 0.62, this corresponds to a discount of only 3.2 per cent. The capital measure is expected to be completed by the middle of the month, so that the CDIs can probably be booked into the new shareholders’ securities accounts on 16 November.
The newly issued CDIs rank pari passu with the existing Chess Depositary Interests and each CDI is economically equivalent to one ordinary share in the company’s stock. It is telling that Laramide Resources’ capital raise was carried out that quickly and smoothly and that the issue price is very close to the current market price, which means higher total proceeds for the company.
The next development steps are therefore solidly financed
The net proceeds from the financing will be used primarily to accelerate development projects in the US and to expand drilling at the company’s advanced exploration assets in Australia during the next field season. However, a portion of the proceeds will also be used for general working capital.
Laramide’s President and Chief Executive Officer, Marc Henderson, was pleased with the progress of the capital raise. He commented on the closing of the financing: “We are pleased to enter this phase of Laramide’s development supported by the uranium industry, which appears to have entered a new bull market with spot prices above $70.00. The capital raising will enable further permitting of Laramide’s development projects in the US and the acceleration of exploration in Queensland and Australia’s Northern Territory.”
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