The company’s unique beneficiation process provides the potential of a 50% reduction in CAPEX and OPEX compared with conventional processes. Pic: via Getty Images
Elevate Uranium raises $25m to develop Koppies’ cost-saving demonstration plant
Mining
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- Elevate Uranium raises $25m to fund development of the Koppies demonstration plant
- Funds will also wrap up scoping study for the project
- The company also plans to complete 100,000m of exploration drilling
Special Report: Elevate Uranium has raised $25 million via a placement at 32.5c per share to accelerate the next phase of development at its Koppies uranium project in Namibia, including the construction of an U-pgradeTM demonstration plant.
U-pgradeTM is the company’s 100% owned breakthrough beneficiation process which reduces ore mass by 95% prior to leach.
The two-tranche placement received strong support from domestic and offshore institutional investors including specialist uranium and natural resources funds.
Australian fund manager Paradice Investment Management has committed to ~$12.4m for a ~9.9% pro-forma holding in Elevate Uranium (ASX:EL8) on completion of the offer.
“Demand for the $25m placement was strong and it was great to see such a tangible endorsement of our strategy, which will allow us to aggressively advance our flagship Koppies uranium project in Namibia,” EL8 managing director Murray Hill said.
“The placement strengthens our financial position and adds further depth to our register, attracting significant institutional support.
“Notably, we are pleased to welcome Paradice Investment Management to the register, who will become a substantial holder in the company.”
Exploration and studies
The placement will fund the operation of the demonstration plant and completion of a scoping study, along with ~100,000m of resource and exploration drilling across the company’s Namibian and Australian portfolio.
“Our priority is the development of our Koppies uranium project, with a key milestone being the construction and operation of an U-pgrade™ demonstration plant to validate the capital and operating costs of the process continuously and at scale,” Hill said.
“We are very confident in the value U-pgrade™ can deliver to the project and look forward to presenting the benefits to our shareholders in further development and technical studies.
“We are also continuing exploration of our other projects in Namibia and Australia, with approximately 100,000m of drilling planned.
“In an increasingly buoyant uranium price environment, we are excited about the next phase for the company and look forward to sharing our future progress with new and existing Elevate Uranium shareholders.”
Uranium shares have been supercharged lately with tech companies increasingly looking to the nuclear option to power AI data centres due to their high energy demands and nuclear’s low carbon characteristics.
Approximately 32.4m shares will be issued immediately under Tranche 1, with the issue of a further approximately 44.5m under Tranche 2, subject to shareholder approval which will be sought at a general meeting expected to be held in early December 2024.
This article was developed in collaboration with Elevate Uranium, 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.
