Toro Energy [ASX:TOE], the Australian resources miner specialising in uranium, gold, and nickel, announced the completion of its $5 million capital raise for advancing its Lake Maitland, Dusty, and Yandal Projects.
Toro’s share price has now been lowered by almost 8% on Friday afternoon and has plunged 54% over the last 52 weeks.
Australian resources and commodities remain a topic of contention. As oil and gas prices continue to fall, some commodities have been moving up — uranium has lifted by more than 0.5% today, and gold by 0.18%.
Competition has also been fuelled; for example, gas and oil corporation Beach Energy [ASX:BPT] today backed out of a takeover battle over Warrego Energy [ASX:WGO] which had been hot against Hancock over the past week.
Within its industry, though, TOE is trading at 89% below.
Toro’s $5 million placement
The uranium producer announced its completion of the $5 million placement — creating 461,545,455 new fully-paid ordinary shares as launched on Wednesday in support of the advancement of Lake Maitland, Dusty, and Yandal Projects.
Toro said the $5 million was made of firm commitments, with each share representing a 15.4% discount to the last close on 6 December and a 19.7% discount to the five-day VWAP (volume-weighted price).
Toro stated it was well supported by both new and existing shareholders of institutional, sophisticated, and professional varieties.
The new shares will be issued at 11 cents each, and for every two new shares comes a free-attaching unlisted option with an exercise price of $0.018 and a term of 24 months from the date of issue.
The company’s Lake Maitland Uranium Project will now be well funded for its scoping study, with further evaluation of vanadium resources soon to commence.
Thanks to the new funds, there will also be a pilot program instigated as part of the Lake Maitland prefeasibility study.
Proceeds will also go towards evaluating Toro’s Wiluna uranium Project, and exploring precious and base metals at its Duty, Yandal and Lake Maitland Projects.
Any excess funds shall be put into the company’s general working capital, and expenses used to promote and execute the offer will also be paid out.
Canaccord Genuity and Petra Capital were Joint Lead Managers and Bookrunners to the Placement.
TOE’s Executive Chairman, Richard Homsany, commented:
‘Toro is pleased with the outcome of this fundraising and is delighted to welcome a number of new highly reputable investors to its register, including those with a specialist uranium focus. On behalf of the Board, we would like to thank the joint lead managers and all new and existing investors who supported the transaction. The outstanding results of the Lake Maitland Scoping Study provide a strong foundation for the enhanced viability of not only Lake Maitland but the entire Wiluna Uranium Project with further work. The consistent and continued success of our nickel exploration campaign also provides investors with a further avenue for growth in value.’
Settlement of the Placement Shares is to occur next Thursday.
All Placement shares and related Options will rank equally with the company’s existing shares on issue.
Resources boom — an insider’s attack plan
You’ve probably already heard about the next big mining boom that’s been predicted to happen in the next few years.
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Similar patterns that occurred 20 years ago are happening again.
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For Money Morning