Boss Resources (ASX:BOE) has stepped closer to entering the uranium business after raising about A$4.3 million for its acquisition of the Honeymoon uranium project in South Australia.
Last month, the base and precious metals developer entered into an agreement with Carbine Resources Limited (ASX:CRB) to purchase of Honeymoon from Russia’s state-owned Uranium One Inc (TSE:UUU) in a deal worth more than $10 million.
Terms included an initial cash payment of $2.4 million (guaranteed by Carbine), $4 million in promissory note issuing and a $2 million component payable in cash or shares.
With completion of the share placement to raise $4.3 million, Boss will now facilitate the release of Carbine from its guarantee obligations.
The fundraiser included a rights issue, shortfall issue and additional placement.
Within this effort, a successfully placed shortfall of 127,217,483 shares raised $1,908,262.25 before an overwhelming demand from both existing shareholders and new investors instigated the placement of an additional 68,480,903 shares to raise a further $1,027,213.55.
Boss directors are now expected to seek approval to participate in further $300,000 placement.
Honeymoon is located 80 kilometres northwest of Broken Hill near the South Australia-New South Wales border in the Callabonna sub-basin, which also hosts Heathgate Resources’ producing Beverley uranium mine.
The deal is expected to recast Boss as a leader in the Australian uranium sector as sentiment for the nuclear fuel improves on momentum in Asian reactor building.
Honeymoon boasts 5.29 million tonnes of resources grading 0.14% uranium oxide for a holding of 7,530 tonnes of uranium oxide. The inventory is considered amenable to in-situ leach (ISR) recovery, a process roundly described by analysts as the cheapest and most efficient uranium production method.
It is one of only four fully permitted uranium projects in the country, but has never been fully commissioned.
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