Cauldron Energy Ltd (ASX:CXU) has now received A$2.5 million in funds pursuant to the placement agreement with a new Chinese investor.
The new investor will be issued 31.25 million shares at an issue price of $0.08 subject to shareholder approval.
Approval will be sought at the company’s upcoming annual general meeting on 24 November 2016.
Funds raised will primarily be used at the Bennet Well uranium deposit within the Yanrey Project in Western Australia to complete its passive seismic survey work, commence field leach trials and for working capital.
Tony Sage, executive chairman, commented: “We are pleased to have received this significant investment funding from a new key Chinese investor.
“The funding will allow the company to continue its work to advance its significant uranium resource project located in the Yanrey region of Western Australia.”
While the company continues to retain its interests in South Australia and Argentina, Cauldron’s main focus remains on the Bennet Well uranium deposit within the Yanrey Project in Western Australia.
The Bennet Well uranium deposit is comprised of three spatially separate deposits:
- Bennet Well East;
- Bennet Well Central; and
- Bennet Well South.
In December 2015, Cauldron achieved its objective of increasing the Mineral Resource estimate of the Bennet Well uranium deposit.
The upgraded Mineral Resource JORC 2012 estimate was reported as 38.9 million tonnes at 360 parts per million uranium for 30.9 million pounds of uranium oxide.