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54,333,334 new ordinary shares at a price of 1.5 pence per share to raise approximately £815,000
The Directors’ of URU (AIM:URU), the base metals and uranium explorer and development Company, has announced that it has raised approximately £815,000 from institutional and private investors to progress its 100 per cent owned Zebediela Nickel project in South Africa and for general working capital purposes.
The placing of 54,333,334 New Ordinary Shares of US$0.01 each was undertaken at a price of 1.5 pence per share to raise approximately £815,000 of gross proceeds.
· The Company announces completion of a placing of 54,333,334 New Ordinary Shares at a price of 1.5 pence per New Ordinary Share to raise approximately £815,000 of gross proceeds
· Net proceeds from the Placing will be used by the Company to progress its disseminated nickel project in South Africa which has the potential to become one of the world’s top 10 nickel producers and for general working capital purposes
· The New Ordinary Shares to be issued in connection with the Placing are equivalent to approximately 36% of the Company’s existing issued ordinary share capital
Commenting on the fund raising, David Subotic, Chairman of URU Metals said:
“We believe that the Zebediela nickel project in South Africa is unique, both in size and geology. Once developed and at the current nickel prices, Zebediela has the potential to become one of the world’s top nickel projects. We are delighted to announce the successful fundraising, it proves that there is still appetite in the market for small companies with quality assets. We look forward to updating the market on our progress.”
URU Metals has raised approximately £815,000 gross through the Placing, conducted by Beaufort Securities, with institutional and private investors at the Placing Price on a non pre-emptive basis.
The New Ordinary Shares are credited as fully paid and rank pari passu with the existing issued Ordinary Shares. Application has been made for the New Ordinary Shares to be admitted to trading on AIM, which is expected to become effective on 9 May, 2014.
Following Admission, the Company’s enlarged issued share capital will comprise of 203,673,952 Ordinary Shares. The Company holds zero shares in treasury. Therefore the total number of Ordinary Shares with voting rights is 203,673,952, which figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.
A number of the Company’s existing shareholders have participated in the placing, including NWT Uranium. As NWT Uranium is a substantial holder in the Company, this constitutes a related party transaction pursuant to Rule 13.
Jay Vieira, Non-Executive Director of URU, having consulted with the Company’s nominated adviser, WH Ireland Limited, considers that the terms of the Placing, and the participation of NWT Uranium, to be fair and reasonable insofar as the Company’s shareholders are concerned. Hargreave Hale, an existing significant shareholder, has also invested in the Placing.
· Separately from the placing, the Company announces that the Directors and a consultant to the Company, John Zorbas, are to be issued with the following shares: 3 million shares for David Subotic
· 2 million shares for Jay Vieira
· 3 million shares for John Zorbas, a consultant to the Company
The Shares are to be issued in recognition for work done to complete the Zebediela acquisition, and dealing with other matters in the Group following the resignation of the former CEO of URU in December 2013, which required a significant amount of work, over and above that usually required of Non-Executive Directors, for which no further salary was paid.
