Neo Energy Metals PLC (LSE:NEO)’s share price surged by more than a quarter on Friday after the company raised £500,000 from an additional share placing on the main market of the London Stock Exchange, following its market debut.
The Nairobi-based company became the first specialist uranium producer to be listed on London’s main market earlier this week following a reverse takeover by Stranger Holdings PLC.
According to a broker note from First Equity, Neo Energy Metals raised £4.9 million in gross proceeds from its initial listing yesterday, kicking it off with a market capitalisation of £15 million.
Jason Robertson, an analyst at First Equity, said that the initial focus will be on a low-cost uranium project in the Northern Cape Province of South Africa, "upon which a clear pathway to production is being set out".
Neo Energy Metals owns a majority stake in the Henkries Uranium Project in the Northern Cape Province, where more than US$30 million of historical exploration and mining has taken place.
Feasibility studies estimate a uranium resource of 4.7 million pounds at the site.
The uranium company said in a statement today that it had raised half a million pounds sterling through the follow-on issue of 40 million new ordinary shares at a price of 1.25 pence per ordinary shares, which were submitted for admission to the main market of the LSE.
Its issued share capital after the share subscription will total 1,256,371,468 ordinary shares with voting rights.
Neo Energy Metals' chief executive officer Sean Heathcote said: "The additional placing of £500,000 underlines the potential of the future of Neo Energy Metals PLC (LSE:NEO).
"Demand for shares in the company continued post the publication of the prospectus and demonstrates strong investor confidence in the business model, the assets, and the future prospects of the company."