Commodities, Finance, News, Uranium

Vimy raises $17m, uranium jumps to 10-year high

Vimy

Vimy Resources has further solidified its Mulga Rock uranium project in Western Australia after successfully raising $17 million.

Russia’s recent attack on Ukraine’s Zaporizhzhia nuclear power plant had stoked fears over the safety of uranium as an energy source, however Vimy said the placement was well supported by both new and existing shareholders.

Vimy will issue 100 million ordinary shares at an issue price of $0.17 per share, which represents a 24.4 per cent discount to Vimy’s closing share price on Thursday March 3.

“The past few days have been exceptionally volatile for the global uranium sector, given the events on Friday in Ukraine,” Vimy managing director and chief executive officer Steven Michael said.

“The strategic value of uranium deposits in Tier 1 jurisdictions has never been more apparent and there are few near-term development opportunities that meet those criteria.”

Michael said the raising’s proceeds are critical to Mulga Rock’s continued development.

“The capital raising allows Vimy to be fully funded into 2023, when the company expects to have completed the bankable feasibility study at Mulga Rock and commenced additional early works for project development,” he said.

“Vimy will also undertake the first major drilling program since 2019 at one of Australia’s premier uranium addresses at Alligator River in the Northern Territory, with the aim of increasing the existing high-grade Angularli resource of 26 million pounds at 1.3 per cent  U3O8 (triuranium octoxide).

“Having a strong balance sheet allows Vimy to approach the uranium contracting cycle in a much more strategic manner. Also, the potential to establish two uranium projects in Australia at this time of heightened geopolitical uncertainly cannot be underestimated.”

It comes as uranium futures rose above $US53 ($72.5) per pound, its highest figure since November 2011, with ballooning oil prices prompting nations to pivot to alternative energy sources.

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