Uranium explorer and developer Neo Energy Metals PLC (LSE:NEO) started trading on London's main market today after reversing into cash shell Stranger Holdings PLC.
Having raised £4.9 million gross at a price of 1.25p per share as part of the reverse takeover process, the company had a debut market capitalisation of roughly £15 million. The shares opened at 1.38p but were trading at 1.13p by late morning.
Watch: Neo Energy CEO explains the attractions of the Henkries uranium project
"With this milestone reached, we have an extremely exciting opportunity to fast-track our low-cost, near-term Henkries uranium project located in the Northern Cape Province of South Africa towards a development decision within two years," said chief executive Sean Heathcote.
Some of the new cash will be used to update the feasibility study and target an increase in mineral resources at Henkries, where it holds up to a 70% interest.
Henkries has had more than US$30 million spent on historical exploration, drilling, test-pitting, metallurgical testing and pilot plant work, the company said, with the current feasibility study estimating mineral resource of 4.7 million pounds of uranium.
Heathcote said increasing the project's mineral resources "is highly probable" as less than 10% of prospective ground has been fully tested.
"We have joined the market at an opportune time," he added. "As the cleanest, cheapest, and safest form of mass power generation, interest in uranium is building momentum. With circa 10% of the world's power generation coming from nuclear, rising to almost 20% in advanced economies, current inventories are being depleted and no new deposits are being put into production."