Vimy Completes Successful Equity Raising and Announces Share Purchase Plan Offer
Vimy Resources Limited (ASX:VMY) is pleased to announce that gross proceeds of A$3.9 million was successfully raised through a placement to institutional and sophisticated investors.
Commitments received from new and existing institutional and sophisticated investors for a well-supported A$3.9 million Placement
Funds will be used to strengthen the Company’s balance sheet, and undertake an exploration program at the Alligator River Project, as well as to update the Definitive Feasibility Study at the Mulga Rock Project
A Share Purchase Plan (SPP) will shortly be offered to eligible shareholders to raise up to an additional A$3.0 million
The Company will issue 77.87 million fully paid ordinary shares (Ordinary Shares) at an issue price of $0.05 per share, representing approximately 14.9% of the shares on issue (on a pre-Placement basis), pursuant to its existing capacity under ASX Listing Rules 7.1 (71.97 million shares) and 7.1A (5.90 million shares). All new shares, once issued, will rank pari passu with existing Ordinary Shares.
Morgans Corporate Limited and Euroz Securities Limited acted as joint lead managers and joint bookrunners together with Bacchus Capital Advisers Limited who acted as financial adviser to the Placement in respect of international investors. Participants in the placement included both existing and new institutional and sophisticated investors. Proceeds from the capital raising will be used to progress the Alligator River and Mulga Rock Projects, as well as to strengthen the Company’s balance sheet.
Commenting on the successful Placement, Vimy’s Managing Director and CEO Mike Young said, “It’s great to see so many investors, both new and existing, who appreciate the high quality of our portfolio. The outlook for uranium continues to improve, it feels like the whole nuclear industry has made a significant turn for the better. Owing to the increased rhetoric around the “climate emergency” and the demonstrable failure of industrial scale renewable energy to significantly reduce greenhouse gas emissions, there is now much more dialogue around nuclear energy’s role.
I would like to welcome all new shareholders to the register and thank those who have increased their holding. Following on from the excellent announcement on 1 October 2019, the team can’t wait to commence the next exploration program at the Alligator River Project. The geochemistry results confirmed Vimy’s geological models and exploration methods and highlighted the exciting Jabiluka-style mineralisation targets.
I would like to thank Morgans, Euroz and Bacchus for undertaking such a successful fundraising process.”
For the full release, please visit Vimy’s website.