Vimy Resources Ltd. has received commitments from new and existing institutional and sophisticated investors for up to A$6.6 million, it said Sept. 23.
The company also intends to conduct a non-underwritten share purchase plan to facilitate retail shareholder participation, targeting A$500,000 to A$1 million at the placement price of 26 cents per share.
The funds raised from the placement will be used to advance the Mulga Rock uranium project in Western Australia, mainly for uranium grade optimization drilling to determine if the variability in contained uranium metal discovered in bulk samples from the Ambassador test pits is consistent across the project.
Meanwhile, Vimy has decided to convert the A$15 million unsecured bridging loan from Resource Capital Fund VI L.P. into equity at 26 cents apiece for 57,692,307 new ordinary shares.
A general shareholder meeting is expected in December to vote on conversion of the loan into equity.
The company completed the final drawdown of the A$15 million bridging loan on Aug. 15.
Following the transactions, RCF will have a 29.9% shareholding in Vimy.