LONDON (ShareCast) - (Sharecast News) - URU Metals announced on Friday that it has raised £0.3m through a placing of 10 million new shares at 3p each, to accelerate exploration and development work at its Zebediela nickel project in South Africa.
The AIM-traded firm said the proceeds would support geophysical interpretation, reinterpretation of historic drilling data, groundwork for a maiden NI 43-101 compliant resource, and efforts to improve the overall grade of the historical resource by targeting higher-grade geological units.

Funds would also aid progress toward the award of mining rights.

The placing was arranged by Axis Capital Markets, which had been appointed joint broker to the company with immediate effect.

URU said the new shares, which would rank pari passu with existing ordinary shares, were expected to be admitted to trading on AIM on or around 3 April.

Following admission, URU's total issued share capital would consist of 51,167,275 ordinary shares.

"As things begin to pick up at the Zebediela project we are pleased to announce a partnership with Axis as these funds are pivotal in accelerating our ongoing work program. We look forward to updating the market on several fronts in the near term," said chief executive officer John Zorbas.

At 1359 GMT, shares in URU Metals were down 41.18% at 5p.

Reporting by Josh White for Sharecast.com.

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