Core Energy Minerals (ASX:CR3) has secured $3.025 million through a discounted share placement to fund drilling and resource definition at its Nova Uranium Project in Namibia’s Erongo province.
- Placement raises $3.025 million at $0.006 per share
- Substantial shareholder Jose Luis Manzano invests $1 million
- Funds earmarked for drilling at Barking Gecko Prospect
- Placement includes two tranches, second tranche needs shareholder approval
- Directors commit to participate alongside institutional investors
Capital Raising Secures Exploration Funding
Core Energy Minerals has locked in a $3.025 million placement at 0.6 cents per share, a 25% discount to its last traded price, to accelerate uranium exploration at its Nova Project in Namibia. The raise attracted strong backing from both new and existing institutional, professional, and sophisticated investors, underscoring market confidence in Core Energy’s strategy in the Erongo uranium province.
Substantial shareholder Jose Luis Manzano, founder of Integra Capital, has committed $1 million, boosting his stake to nearly 20%. His involvement signals a vote of confidence, given his track record supporting Core Energy’s board in previous ventures.
Two-Tranche Placement Structure
The placement will be conducted in two parts: an unconditional first tranche of approximately 178 million shares, expected to settle around 11 September, and a conditional second tranche of up to 326 million shares, subject to shareholder approval at a general meeting anticipated in mid-October. The second tranche also includes free-attaching unlisted options exercisable at 1.1 cents, expiring three years from issue, designed to provide further upside to investors.
Core Energy’s directors, including Chairman Chris Gale and Managing Director Tony Greenaway, have committed to participate in the second tranche, collectively investing $100,000 on the same terms as other investors. This alignment of interests is notable as the company prepares for the next phase of exploration.
Targeted Use of Funds for Resource Development
The capital will fund drilling at the Barking Gecko Prospect, a key target within the Nova Uranium Project, aiming to delineate a maiden JORC-compliant resource. This follows Core Energy’s recent strategic earn-in agreement to acquire up to 51% of the Nova JV, consolidating its footprint alongside projects like Gemsbok and Oryx in the region.
With fieldwork set to commence immediately, the company is positioned to rapidly advance its exploration program, which could unlock significant value if high-grade uranium mineralisation is confirmed. The raise also covers general working capital and capital raising costs, ensuring operational flexibility.
Placement Managed by Canaccord Genuity
Canaccord Genuity Australia is leading the placement, earning a 4% capital raising fee and a 2% management fee, along with 25 million options mirroring the terms offered to investors. This partnership reflects Core Energy’s ability to attract reputable advisers for its capital market activities.
While the discounted pricing reflects current market conditions, the strong institutional support and director participation provide a solid foundation for Core Energy’s next exploration milestones in Namibia’s prolific uranium province.
Bottom Line?
Core Energy’s $3 million placement strengthens its balance sheet ahead of critical drilling at Nova, but shareholder approval for the second tranche and options remains a key upcoming hurdle.
Questions in the middle?
- Will the shareholder meeting approve the second tranche and attached options as planned?
- How will drilling results at Barking Gecko impact Core Energy’s valuation and investor sentiment?
- Could Core Energy expand its Namibian footprint beyond the Nova JV to leverage regional uranium potential?