URA Holdings PLC (LSE:URAH) saw its shares jump 14% higher on Tuesday morning after the firm said it had raised £280,000 through an oversubscribed placing and subscription, issuing 14,000,000 new ordinary shares at a price of 2.00p per share.
The fundraise was conducted at a 10% discount to the mid-market closing price on 19 May 2023, and falls within the company's existing authority to issue shares for cash on a non-preemptive basis.
An additional £50,000 was raised through a convertible loan note with Austin Acquisitions 1 Limited, which will convert after the next annual general meeting, subject to shareholder approval. This move aims to diversify the shareholder base and facilitate new investor participation.
The company said the funds raised will be allocated towards critical equipment needed for the resumption of mining operations at the Gravelotte Emerald Mine, as well as general working capital. The centerpiece of the equipment order is a custom-manufactured Tomra optical sorter from Germany, which will enable the swift restart of production at the Gravelotte mine.
In a statement, Ed Nealon, Chairman of URA Holdings commented: "I am pleased to announce a successful fundraise which has been oversubscribed in difficult market conditions. We welcome the participation of new shareholders and participation in the CLN by Austin Acquisitions 1 Limited, a personal investment company of Mr Andrew Austin, which we believe speaks highly of confidence in our strategy and plans.
"We look forward to progressing into the next phase of mine development to bring forward our planned early move back into production. We remain extremely excited for the future of the company."
Around 8.55am, URA shares were 14.3% higher at 2.40p.