Uranium explorer URU Metals Ltd (LON:URU) has raised £640,000 as it looks to push on with the work programme at its Zebediela nickel project in South Africa.
The company raised the money through a placing of 160mln shares at 0.4p each – a slight discount to yesterday’s close.
A couple of directors also took part, with chief executive John Zorbas and chairman David Subotic each subscribing for 12.5mln shares.
Uru told investors that it will use the proceeds to fund drill testing, infill drilling, metallurgical studies and the completion of an updated mineral resources estimate at its 100-owned Zebediela project.
“The scope of work is to increase the confidence on the potential magnetite resource which has been identified in the oxide and sulphide zones of the orebody,” the company said in its stock exchange announcement.
It also hopes that the drilling and metallurgical test work will generate sufficient data to update the existing preliminary economic assessment (PEA).
Shares closed at 0.54p on Monday.