Toro Energy yesterday announced it had raised $40 million through share placements to fund all approvals and a bankable feasibility study for its Wiluna Uranium Project in Western Australia.
The funds were raised via oversubscribed placements at 15 cents per ordinary Toro share.
Toro’s major shareholder, OZ Minerals announced it would subscribe to a placement of 132.9 million shares, or however many are necessary to maintain its 49.9% stake.
If approved by Toro shareholders, this will cover $19.9 million of the total.
The company aims to have all approvals and studies completed by 2011, so production at the Wiluna Project can begin in 2012.
Additionally, Toro announced that OZ Minerals’ chief financial officer Andrew Coles had joined its board of directors on Monday.
According to Toro managing director Greg Hall, the increasing support from the senior end of the equities market was a vote of confidence in its Wiluna plans and strategies.
“The proceeds will also provide the opportunity to advance our other project and exploration work in WA as well as Napperby in the Northern Territory,” he said.
“We will also be able to take advantage of consolidation opportunities in the sector.”
According to OZ Minerals, the company views the investment as a strategic window into the uranium industry.
“OZ Minerals believes that it is prudent to continue holding this strategic interest at current levels and to support Toro in its efforts to commercialise the Wiluna Uranium Project and progress its various other interests in the Uranium sector,” the company said.