Toro Energy Limited has secured firm commitments for a $12.3 million placement comprising the issue of approximately 23 million new fully paid ordinary shares in the capital of the company.
The promised funds will primarily support further development of the Wiluna Uranium Project and provide working capital for Toro.
Proceeds will be used to fund:
- a pilot plant program that is part of the Lake Maitland pre-feasibility study and to test samples across Toro’s entire Wiluna Uranium Project
- the drilling for additional samples at Lake Maitland, Lake Way and Centipede-Millipede for further metallurgical test work to inform an improved processing flowsheet
- additional exploration and evaluation activities to maintain tenements in good standing
- general working capital and placement costs
Under this placement, Toro will issue new fully paid ordinary shares at $0.52 per placement share.
This offer price represents a 13.3 per cent discount to the last close on 17 January 2024 — which was $0.60 per share — and a 13.2 per cent discount to the 5-day VWAP, which was $0.599 per share.
Canaccord Limited and Euroz Hartleys Limited acted as joint lead managers and book runners to the placement.
Toro Executive Chairman Richard Homsany represented the company’s Board of Directors, thanking joint lead managers and investors who supported the transaction.
“The Board is grateful for the continued support of our existing shareholders and will offer eligible shareholders the opportunity to apply for new Toro shares under a Share Purchase Plan.
“As global uranium markets continue to strengthen and public sentiment and government support align, Toro remains committed to developing the Wiluna Uranium Project to maximise its value.”
Toro will offer eligible shareholders the opportunity to apply for new Toro shares under a Share Purchase Plan without incurring brokerage fees.
The company intends to raise to at least $2 million through the issue of shares under the Share Purchase Plan at the same price as the ordinary shares.