Power Metal Resources has received heavyweight backing for its latest funding round, with Rick Rule-vehicle Term Oil agreeing to invest up to £1mln.
Rule, a well-known Canadian mining investor and big name at investment firm Sprott, will put up a minimum of £0.5mln through Term Oil.
Power Metal, which is aiming to raise £2.71mln in total, is placing the shares at 0.85p per share with warrants exercisable at 2p attached.
Sean Wade, Power Metal’s chief executive, will also subscribe for just under £100,000 worth of shares in the placing.
Wade commented: "I am very pleased to be able to announce this capital raise and to reassure shareholders that we are now in a sustainable position to advance our exploration activities, most particularly in respect to our uranium portfolio.
“Moreover, I am delighted to welcome Rick Rule's Term Oil vehicle to the register and the new shareholders who are joining us with his endorsement.
“This is not only a strong validation of our business model but also puts us on a sound footing to continue to deliver our goal of unlocking the significant inherent value in our portfolio."