Uranium Exploration Australia (UXA) has secured commitments for a share placement in order to raise $5 million from institutional and sophisticated investors, the said in an announcement to the Australian Securities Exchange.
The company said it also intends to raise additional funds by implementing a share purchase plan which provides current shareholders with the opportunity to subscribe for UXA shares on the same terms offered under the placement.
According to UXA, the placement was oversubscribed and has seen the introduction of a number of new domestic and offshore institutional shareholders to the company’s register.
Much of the funds are earmarked for ongoing exploration, with a particular focus on aggressively evaluating the Company’s newly discovered uranium deposit at Ngalia Thrust in the Northern Territory.
Under the placement, UXA will issue shares at a price of $0.10, which the company said represents a 36% discount to the thirty day volume weighted average price prior to entering a trading halt on 6 August.