Uranium explorer Uranium Resources is raising £2m at 1.92p a share.
The new shares are equivalent to 26.3% of the enlarged share capital and are all being bought by Estes Ltd, a part of resources investor Tangent Fund Group which has $1.16bn under management. Estes will appoint Vyacheslav Medvedev as a Uranium Resources director. This investment gives Target Fund exposure to uranium.
Uranium Resources will use A$2.5m (£1.37m) of the cash to complete the purchase of Indago Resources Ltd’s interest in the company’s Southern Tanzania uranium portfolio. Uranium Resources will also issue A$400,000 of shares to Indago at the same price as the placing. The rest of the cash will fund exploration and working capital.
Uranium Resources will end up wholly owning the Mtonya project, which is near to Mantra Resources’ Mkuju River Project. Mtonya will be the main focus in 2010. Uranium Resources also has a coal joint venture with Rio Tinto.
At 1.625p a share, Uranium Resources is valued at £4.73m.
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