C29 Metals Limited, an Australian minerals exploration company has successfully raised $2.45 million through a fully subscribed placement, with strong demand from sophisticated investors.
What Happened
The $2.45 million funds will be used for exploration activities at the Ulytau Uranium Project in Kazakhstan, as well as for working capital. This move signifies C29’s strategic focus on expanding its uranium exploration efforts amid growing interest in energy transition resources.
The southern tenement increases the project’s footprint by approximately 213 km². The Ulytau project, located in the Almaty region of southern Kazakhstan, is situated about 15 km southwest of the historic Bota-Burum mine.
This region has been a center for uranium exploration since 1953, with the Bota-Burum mine beginning operations in 1956 and continuing until 1991. The total reserves of the Bota-Burum mine are reported to be around 20,000 tonnes of uranium, equivalent to 44 million pounds.
Management Commentary
C29 Metals managing director Shannon Green said: “It is very exciting to have this highly prospective application granted in such a rapid time frame. This is further demonstration of the positive operating environment in Kazakhstan and the support the company is enjoying.”
Footprint Expands
Recently, the company expanded its footprint at Ulytau by adding an additional 39 km² to its landholding after securing a new tenement.
In July, C29 submitted two licence applications covering just over 250 km² around the Ulytau Uranium project, both of which were granted in under 50 days, showcasing the efficient process and strong local support in Kazakhstan.
The first application, covering 213 km² to the south, was granted at the beginning of August. C29’s managing director, Shannon Green, emphasised that the swift approval process reflects the efficiency of Kazakhstan’s governmental agencies and their support for the company’s initiatives.
Stock Price Movement
The share price of the C29 Metals Ltd increased by 18 percent on Friday, reaching a high of 0.084 AUD (Australian Dollar), up from its previous close of 0.071 AUD.
Financial Performance
In its latest financial update, the company reported net sales of $13,229 in the year ended June 2024, down from $30,895 in the year ended June 2023. However, company reported huge net losses of $3,423,177 in June 2024, compared to $2,642,035 in June 2023.
About the Company
C29 Metals Limited is an Australian minerals exploration company primarily focused on uranium and copper assets. The company aims to support the clean energy transition through systematic exploration and development of its resource portfolio.
C29 Metals is strategically positioned in southern Kazakhstan, a region known for its high-grade uranium production, which is vital for nuclear energy generation.
Written by – Siddesh S Raskar
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