Vimy eyes $30m RCF funding
UPDATE 2.25pm: Vimy Resources is seeking to raise $30 million to fund it through to financing of its Mulga Rock uranium project.
The company will raise $5 million by way of a placement of 16.6 million shares at 30 cent shares each to Resource Capital Fund (RCF) and the two companies have agreed, in principle, to the terms of a further $25 million funding package.
RCF will hold a 7.98 per cent stake in the company if the entire $30 million funding package goes ahead.
The $25 million package will comprise $10 million in cash in exchange for a 1.15 per cent royalty on all revenue from Mulga Rock and a $15 million unsecured bridging loan with a March 31, 2017 repayment date.
Vimy said the $5 million raised in the placement would be used to complete a pre-feasibility study on the project.
The company expected to complete the study in the third quarter of calendar 2015.
Vimy chief executive and managing director Mike Young said the company’s recently-released scoping study confirmed its belief that Mulga Rock was one of Australia’s best undeveloped uranium projects.
“RCF’s funding package will provide the funds we need to complete our studies and secure project financing,” he said.
Vimy shares were off one cent, or 2.5 per cent, to 39 cents at the close.
