Power Metal Resources PLC (AIM:POW) shot up by 22% as it announced it has completed a pre-float fundraise ahead of the listing of its Canadian uranium assets.
Flagged previously, the initial public offering (IPO) will see the conditional disposal of the Reitenbach and E-12 uranium properties into shell Teathers Financial, which will then be renamed Uranium Energy Exploration (UEE).
Teathers/UEE has conditionally raised approximately £421,500 at around 1.24p a share to self-finance its operations, including its IPO advisory costs, corporate expenses and various project expenditures.
This is work required in advance of a listing in London, which currently is scheduled for the first and second quarters of 2024.
Power Metal expects to hold a significant interest in the vehicle once it floats.
Sean Wade, Power Metal's chief executive, said: "I am very pleased to be able to report positive progress towards the UEE IPO.
“Current market conditions are not conducive to capital raising, and the fact that Teathers/UEE has outperformed expectations in this regard is further validation of investor interest in new uranium-focused opportunities.
“I look forward to the planned IPO of UEE with a high-quality collection of uranium interests and an exciting period of exploration ahead."
Wade is a director and a shareholder of Teathers Financial.
Shares rose 0.14p to 0.78p.