Successful A$5 Million Placement

Toro Energy Limited (Toro or the Company) is pleased to announce that it has secured firm commitments for an approximately A$5 million placement comprising the issue of 461,545,455 new fully-paid ordinary shares in the capital of the Company (Placement). The Placement was well supported by new and existing institutional, sophisticated and professional investors.

• Toro has received firm commitments to raise approximately A$5 million at $0.011 per share
• Strong support from offshore and domestic institutional and sophisticated investors
• Toro’s Board to participate subject to shareholder approval
• Funds to be utilised for further development of the Lake Maitland Project, in addition to the Dusty and Yandal Projects

The Placement funds will primarily support further development of the Lake Maitland Project, the Dusty and Yandal One Projects and provide working capital for the Company. Specifically, funds raised from the Placement will be applied to:

• The Lake Maitland Uranium Project scoping study extension.
  
• Further evaluation of the vanadium resource at Lake Maitland.
• Planning for a pilot program as a function of the Lake Maitland Uranium Project pre-feasibility study.
• Further evaluation of the Wiluna Uranium Project, and precious and base metals at Dusty, Yandal and Lake Maitland.
• General working capital.
• Costs of the Offer.

Commenting on the capital raise, Executive Chairman, Richard Homsany said:

“Toro is pleased with the outcome of this fundraising and is delighted to welcome a number of new highly reputable investors to its register, including those with a specialist uranium focus. On behalf of the Board, we would like to thank the joint lead managers and all new and existing investors who supported the transaction. The outstanding results of the Lake Maitland Scoping Study provide a strong foundation for the enhanced viability of not only Lake Maitland but the entire Wiluna Uranium Project with further work. The consistent and continued success of our nickel exploration campaign also provides investors with a further avenue for growth in value.”

Canaccord Genuity (Australia) Limited and Petra Capital Pty Ltd acted as Joint Lead Managers and Bookrunners to the Placement.

Placement

Toro received strong support from several high-quality institutional investors both domestically and internationally for the Placement.

Under the Placement, the Company will issue new fully-paid ordinary shares (Placement Shares) at $0.011 per Placement Share, together with a free-attaching unlisted option with an exercise price of $0.018 and a term of 24 months from the date of issue (Option) on the basis of one (1) Option for every two (2) Placement Shares subscribed for and issued. The Placement offer price represents a 15.4% discount to the last-close on 6 December 2022 ($0.013 per share) and a 19.7% discount to the 5-day VWAP ($0.0137).

The Placement Shares will be issued within the Company’s existing placement capacity under ASX Listing Rule 7.1 and the issue of the Options will be subject to the Company receiving shareholder approval at an extraordinary general meeting (EGM) to be announced in due course. Settlement of the Placement Shares is expected to occur on Thursday 15 December 2022. All Placement Shares and shares issued upon exercise of the Options will rank equally with the Company’s existing shares on issue. A proposed placement of shares to directors of the Company will be subject to shareholder approval to be sought at the EGM.

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This article includes content from Toro Energy Ltd, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.