Cauldron to secure $11m from Chinese investors for uranium project

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Image credit: flickr User: Aaron Booth

Australian resources company Cauldron Energy Limited has secured $11 million in funding through a series of share placement agreements with a variety of Chinese investors following a fund raising road show in Beijing in late 2013.

Image credit: flickr User: Aaron Booth
Image credit: flickr User: Aaron Booth

According to the article on the ProActiveInvestors, the funds raised will be put to resource definition at the Yanrey Uranium Project in Western Australia and begin exploration at the Marree base metals project in South Australia.

In addition, the company will also invest in exploration of its Argentinean uranium-copper-silver assets.

Under the placement agreements, a total of $93,220,438 new fully paid ordinary shares will be issued in stages at an issue price $0.118 per share to raise $11 million, which equals to 80% of the volume weighted average closing price of the shares of Cauldron as quoted on ASX over the last ten days.

Cauldron has also signed a mandate with a leading investment company in China — Shanghai Joseph Limitless.

Adertisement

“Cauldron has proven it has made a strong strategic alliance with Dr. Joseph Chen, the chairman and founder of Joseph Investment,” said Tony Sage, Executive Chairman at Cauldron Energy Lomited.

“Cauldron’s non-executive director Qiu Derong also continues to support the company by committing $2 million further funding.”

According to the article on the Resource Investor, the parties subscribed to the placement agreements includes Guangrong Investment; Joseph Investment, Guangzhou Joseph and Qiu Derong (Non-Executive Director of Cauldron), with Guangrong contributing with $5 million and the remaining parties with $2 million each.

The placement and option offers are subject to shareholder approval. Cauldron plans to hold a general meeting in July, where shareholder approval will be sought.