URU Metals Limited Placing (7652P)

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)              [phone] 
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                             [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

IOEFFLLLQFFEFBE

(END) Dow Jones Newswires

November 22, 2016 02:01 ET (07:01 GMT)