RNS Number : 7490W
URU Metals Limited
13 February 2017
URU Metals Limited
("URU Metals" or "the Company")
URU Metals (AIM:URU), the base metals and uranium explorer and development company, is pleased to announce that it has raised £535,000 (before expenses) through a placing of 11,888,888 new Ordinary Shares at 4.5p per share ("Placing Shares") ("the Placing").
Reasons for the Placing
Following the appointment of Henry Kloepper as an advisor to the Board of URU the Company has been assessing various opportunities in the Lithium sector in order to expand its portfolio of projects. The net proceeds of the Placing will be used by the Company to investigate these new acquisition targets and also means URU is in a strong position to act on any attractive proposals the Board receives.
Details of the Placing
Niketo Co.Ltd ("Niketo"), which owns a shareholding of 16.1 per cent. of the Company's issued share capital, has agreed to subscribe for 2,000,000 Placing Shares.
The participation of Niketo in the Placing is a related party transaction under the AIM Rules for Companies. Jay Vieira and David Subotic, the independent directors, having consulted with the Company's Nominated Adviser, Northland Capital Partners Limited, consider that the terms of Niketo's participation in the Placing are fair and reasonable so far as the shareholders of the Company are concerned.
Proposed Subscription by Directors
In addition to the Placing, the Board has been advised that John Zorbas and Jay Vieira, directors of the Company each intend to subscribe for 1,111,111 and 444,444 new Ordinary Shares respectively on the same terms as the Placing, following the announcement of the Placing.
Commenting on the placing, John Zorbas, CEO of URU Metals commented:
"This placing, at a significant premium to the placing price in January 2017, represents further investor interest in the Company's existing projects and our plans to expand the portfolio. The new funds raised will allow the Company to investigate and pursue other opportunities particularly in the lithium sector where we are reviewing a number of projects. We look forward to updating shareholders in due course with news from our South African nickel projects."
A further announcement will be made in due course.
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
URU Metals Limited
(Chief Executive Officer)
+1 416 504 3978
Northland Capital Partners Limited
(Nominated Adviser and Joint Broker)
Edward Hutton / Matthew Johnson
+ 44 (0) 203 861 6625
Beaufort Securities Limited
+ 44 (0) 207 382 8300
SVS Securities Plc
+44 (0) 203 700 0093
Zebediela Nickel Sulphide Project, South Africa
The prospecting rights that make up the Zebediela Nickel Project are held by URU's wholly owned South African Subsidiary Lesego Platinum Uitloop ("LPU"). The Project is situated approximately 7km north east of Mokopane (formerly Potgietersrus), in Limpopo Province, South Africa. The project area is located less than 5km from the N1 national highway linking two major cities, and access onto the farms is by all-weather tar and dirt roads. In addition, the national Johannesburg to Polokwane railway line has a siding on the property.
A previously completed NI 43-101 Mineral Resources Estimate at the Project defined:
• An Indicated resource of 485.4 Mt at a grade of 0.245% Ni
• An Inferred resource of 1.115.1 Mt at a grade of 0.248% Ni
Burgersfort Nickel Sulphide Project, South Africa
50% ownership of Burgersfort, located in the Mpumalanga Province of South Africa. Previous exploration identified disseminated nickel targets and three deeper massive sulphide nickel targets.
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