C29 Metals raises $2.45m to fast-track uranium hunt in Kazakhstan

Funds will be directed towards exploration activities at Ulytau
C29’s geology team has been mobilising to site ahead of the rig to start preparatory works
All regulatory requirements have been met for the issue of drill permits

Special Report: C29 has received firm commitments from sophisticated and professional investors to raise $2.45m, paving the way for drilling activities at Ulytau in Kazakhstan.

Preparatory works for an initial diamond drilling campaign got underway earlier this week after C29 Metals (ASX:C29) received official notification from Kazakhstan’s Natural Resources and Environmental Management Department.

The company is planning to test and verify shallow, results. The companys geology team will be usingng a handheld XRF unit in the field, which provides real-time geological information to the team and valuable geological data.

Ulytau is in the Almaty Region of southern Kazakhstan, about 15km southwest of the Bota-Burum mine, one of the largest uranium deposits mined in the former Soviet Union with total output estimated at 20,000t (44Mlb).

Drilling to begin shortly

Drilling activities are anticipated to kick off soon, following a successful $2.45m raise via a placement to sophisticated and professional investors of a total of 34,507,042 fully paid ordinary shares.

At an issue price of $0.071, the placement represents a 0% discount to the last trading price of $0.071 on October 15 and a premium of 3% to the 15-day volume weighted average price of $0.069.

C29 said it received strong support with demand significantly exceeding shares offered under the placement.

Footprint expands

Recently, the company strengthened its footprint at Ulytau adding a further 39km² to its landholding after securing a new tenement.

Wasting no time, C29 said it would immediately kick off the exploration approval process for the newly acquired ground, which could potentially host a similar mineralised trend to that of the rest of Ulytau.

C29 lodged two licence applications around and near the Ulytau Uranium project for just over 250km² back in July, with both now granted in less than 50 days, highlighting the swiftness and strong local support in Kazakhstan.

The first of those applications to the south covered 213km² and was granted back at the start of August.

C29 managing director Shannon Green said the swift granting process was a testament to the efficiency of the Kazakhstan government’s agencies and support for the company’s efforts.

This article was developed in collaboration with C29 Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.