Extract Resources (EXT-T, EXT-A) has completed a A$30-million financing to fund exploration and development activities at its uranium projects in Namibia.
The company will issue 27.75 million shares at A$1.10 per share through Patersons Securities in Australia and Haywood Securities in the UK.
The company plans to use the cash to further develop its Ida Dome and Rossing South targets.
Extract expects to reach feasibility study stage for both projects after finishing initial resource estimates.
Recent assays from Rossing South include 149 metres grading 474 parts per million U3O8 including 17 metres grading 1,899 ppm.
Another drill intersected 144 metres grading 143 ppm including 18 metres grading 353 parts per million.
The target is located 5 km south of Rio Tinto‘s (RTP-N, RIO-L)Rossing uranium mine which has been in production for about three decades.
A 2007 scoping study on Ida Dome found that a low-grade open pit mining operation would be feasible.
The study considered assays reaching 100 metres depth though the company says drilling has show that mineralization extends to at least 400 metres.
Although there was no official resource yet, the study estimated that 2.92 million lbs. U3O8 could be produced each year over a nine-year mine life.
Extract shares were unchanged in Toronto at $1.25 each with no trading. The stock was off 2 in Austarlia at $1.15 per share on a trading volume of 130,000 shares.
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