URU Metals Limited Placing (7652P)
22 November 2016 - 6:01PM
UK Regulatory
TIDMURU
RNS Number : 7652P
URU Metals Limited
22 November 2016
URU Metals Limited
("URU Metals" or "the Company")
Placing
URU Metals (AIM:URU), the base metals and uranium explorer and
development company, is pleased to announce that it has raised
GBP640,000 from institutional and other investors through a placing
of 160 million new Ordinary Shares at 0.4p per share ("Placing
Shares") ("the Placing").
Reasons for the Placing
The Placing proceeds will be applied to progress the work
programme for the Company's Zebediela Nickel Project including
drill testing potential extensions of the nickel mineralisation,
infill drilling, metallurgical studies and the completion of an
updated mineral resource estimate. The scope of work is to increase
the confidence on the potential magnetite resource which has been
identified in the oxide and sulphide zones of the orebody.
Confirmatory drilling, combined with metallurgical test work on new
and existing drill holes, is intended to generate sufficient data
to update the existing Preliminary Economic Assessment to produce
an updated high level project IRR and NPV, as well as a revised
project plan. Certain key aspects of work are required to assess
this for the two zones:
-- exploration drilling to delineate the magnetite resource;
-- assaying for total iron content, based on new and existing
drill core material, which in turn allows for SAMREC and
JORC-compliant resource modelling;
-- metallurgical test work for a scoping study level mass pull,
recovery and concentrate grade figures; and
-- updating of the financial model using the resource and recovery figures.
Further details of the Zebediela Nickel Project are set out in
the Company's update announcement of 1 November 2016.
Details of the Placing
Niketo Co.Ltd, which owns a shareholding of 21.4 per cent. of
the Company's issued share capital, has agreed to subscribe for 20
million Placing Shares.
The participation of Niketo Co. Ltd in the Placing is a related
party transaction under the AIM Rules for Companies. The sole
independent director, Mr Jay Vieira, having consulted with the
Company's nominated adviser, Northland Capital Partners Limited,
considers that the terms of Niketo Co. Ltd's participation in the
Placing are fair and reasonable so far as the shareholders of the
Company are concerned.
Proposed Subscription by Directors
In addition to the Placing, the Board has been advised that two
directors of the Company, namely David Subotic and John Zorbas,
each intend to subscribe for 12.5 million new Ordinary Shares on
the same terms as the Placing, following the announcement of the
Placing.
A further announcement will be made in due course.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
URU Metals Limited
John Zorbas
(Chief Executive Officer) +1 416 504 3978
Northland Capital Partners Limited
(Nominated Adviser and Joint Broker)
Edward Hutton / Matthew Johnson + 44 (0) 203 861 6625
Beaufort Securities
Limited
(Joint Broker)
Jonathan Belliss + 44 (0) 207 382 8300
SVS Securities Plc
(Joint Broker)
Tom Curran +44 (0) 203 700 0093
This information is provided by RNS
The company news service from the London Stock Exchange
END
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