Vimy Resources Limited (ASX: VMY, OTCQB: VMRSF) (Vimy or the Company) is pleased to announce that it has received firm commitments for an A$18.5 million placement to institutional and sophisticated investors (Placement).
The Placement was well supported by a number of new high-quality domestic and offshore institutions, in addition to the Company's existing shareholders.
Placement
The Company will issue approximately 168.2 million fully paid ordinary shares at an issue price of A$0.11 per share (New Shares), representing approximately 21.6% of the shares currently on issue (on a pre-Placement basis) at a: 18.5% discount to the last close price of A$0.135 on 14 April 2021 and 21.9% discount to the 5-day volume weighted average price of A$0.141 as at 14 April 2021.
New Shares will be issued pursuant to the Company's placement capacity under ASX Listing Rule 7.1 (92.0 million shares) and 7.1A (76.2 million shares). All new shares, once issued, will rank pari passu with existing shares.
Canaccord Genuity (Australia) Limited and Morgans Corporate Limited acted as Joint Lead Managers and bookrunners to the Placement, with Shaw and Partners Limited acting as Co-Manager.
Vimy's Managing Director and CEO Mike Young said, 'Many investors share our view that Vimy is the most leveraged uranium play in the market. I'd like to welcome all new shareholders to the register and thank those who have followed, or increased, their holding.
'The raise allows us to advance early works at the Mulga Rock Project in Western Australia and to continue our exploration program at the Alligator River Project in the Northern Territory. Importantly, a strong balance sheet allows Vimy to approach the coming uranium contracting cycle in a much more strategic fashion.
'Global uranium equities have surged over 300% since late October 2020, with Vimy's share price having tripled. The growing positive sentiment for nuclear clean energy has been the catalyst for this growth. Vimy is in a unique position to capitalise on the supply shortage by progressing the Mulga Rock Project into development, where our first stage AISC is less than the uranium spot price.'
Use of Funds
The funds raised from the Placement will be used to progress the Mulga Rock Project in Western Australia and the Alligator River Project in the Northern Territory, as well as for working capital purposes
Mulga Rock Project: For early works at the project in 2021/22, including site-based works comprising: access road upgrade, ground clearing for village and ancillary facilities, main communications tower development, communications hut and access road, construction of Kakarook North borefield, clearing and grubbing vegetation, and stripping and stockpiling topsoil for Ambassador North and operational airstrip.
Alligator River Project: The 2021 field season to explore advanced exploration targets including Such Wow and Southern Flank. The proceeds will be used to complete additional field work including geochemical analysis, mapping and airborne electromagnetics.
Working Capital, Uranium Marketing, and final Cameco instalment: General working capital to strengthen the balance sheet and enhance financial flexibility to support the Company's Mulga Rock and Alligator River projects, fund the final Cameco payment and to consider other business development opportunities if and when they arise.
Share Purchase Plan Details
The SPP is expected to be open to eligible Vimy Resources' shareholders as at 5:00pm (Perth time) on the record date of Friday, 16 April 2021 (Record Date) whose registered address is in Australia or New Zealand (Eligible Holders). Eligible Holders will be invited to invest up to a maximum of A$30,000 per shareholder in the SPP, subject to any scale back, to raise up to A$3.0 million (or approximately 27.3 million shares). New shares issued under the SPP will be offered at the Placement Price of A$0.11 per share.
Contact:
Mike Young
Tel: +61 8 9389 2700
About Vimy Resources
Vimy Resources Limited (ASX: VMY, OTCQB: VMRSF) is a Perth-based resource development company. Vimy's flagship project is the Mulga Rock Project, one of Australia's largest undeveloped uranium resources, which is located 290km by road ENE of Kalgoorlie in the Great Victoria Desert of Western Australia. Vimy also owns (79%) and operates the largest granted uranium exploration package in the world-class Alligator River uranium district, located in the Northern Territory. Vimy is exploring for large high-grade uranium unconformity deposits identical to those found in the Athabasca Basin in Canada.
VIMY RESOURCES LIMITED 
