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URU directors weigh in as company raises funds

Directors John Zorbas and David Subotic each intend to subscribe for 3.33mln new shares on the same terms as the placing

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The shares were placed at a higher price than in November's share issue

Base metals and uranium explorer and developer URU Metals Limited (LON:URU) has raised £770,000 through a share placing.

The shares were placed at 0.45p a share.

Shares in URU dipped 0.054p to 0.571p on the news.

Funds from the placing will be used to advance the Zebediela nickel project in South Africa, and to recommence work on the Burgersfort nickel project in the Mpumalanga province of South Africa.

The company said it raised the money in advance of positive results expected from the drill testing programme at Zebediela, which is due to start this month.

The programme is designed to increase the confidence on the potential magnetite resource that has been identified in the oxide and sulphide zones of the ore body.

Meanwhile, at Burgersfort, the company plans to invest in the project for the first time since late 2012 in order to maintain its 50% stake in the project, as will its joint venture partner.

The company said the project has the potential to become the “twin sister” project to Zebediela.

Previous exploration of this site by Goldfields and Falconbridge identified several shallow disseminated nickel targets and three deeper massive sulphide nickel targets where diamond drilling was undertaken. 

Any money left over from the placing will boost working capital and will enable the company to consider new acquisition targets.

"This placing, at a 12.5% premium to the placing price in November 2016, represents a further show of confidence by investors in the company's assets,” said John Zorbas, chief executive officer of URU.

“We expect the next six months to be a time of significant progress and development for the company and its project portfolio and look forward to updating shareholders with key milestones and regular news over this period," he added.

Quick facts: URU Metals Ltd

Price: 213 GBX

AIM:URU
Market: AIM
Market Cap: £1.66 m
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