Marenica Energy Ltd (ASX:MEY) received strong support for its U-pgrade technology from investors by raising $697,400 through a share purchase plan and placement, well in excess of the target of $500,000.
A total of $506,000 was raised at $0.107 per share from the share purchase plan, exceeding the $400,000 underwritten amount.
A further $191,400 was raised from share placements at the same price per share.
Marenica is developing the U-pgrade process, which is new low-cost method of processing surficial uranium deposits.
The company’s estimates have indicated a potential reduction in uranium processing costs using U-pgrade of up to 70%, and a reduction in capital costs of up to 50% compared to conventional heap leach technology.
Given the low uranium price, U-pgrade will provide a means for many potential Uranium projects to be developed at significantly lower costs and well below the current project development trigger prices.
Toro Energy (ASX:TOE) and Deep Yellow (ASX:DYL) are sponsoring testing of the U-pgrade ore pre-concentration process at a CSIRO facility in Perth, Western Australia.
With committed testwork programs paid for by third parties, Marenica has secured support from investors and with a relatively slow cash burn rate of its own funds.
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