Neo Energy Metals PLC on Friday said it has raised £500,000 via a subscription of new shares in the company, after listing in London on Thursday.
The South Africa-focused uranium developer said it will issue 40.0 million new shares at a price of 1.25 pence each, which it expects will be admitted to trading on the Main Market of the London Stock Exchange ‘shortly’.
Following admission, Neo Energy Metals will have 1.26 billion shares in issue.
‘The additional placing of £500,000 underlines the potential of the future of Neo Energy Metals; demand for shares in the company continued post the publication of the prospectus and demonstrates strong investor confidence in the business model, the assets, and the future prospects of the company,’ said Chief Executive Officer Sean Heathcote.
Shares in Neo Energy Metals were up 26% to 1.11p each in London on Friday morning.
On Thursday, it listed in London with 1.22 billion shares admitted for trading and a starting market capitalisation of around £15 million, following a reverse takeover process. It raised around £4.9 million, gross of fees and costs via a subscription and placing of shares at 1.25p each.
Neo Energy Metals said its initial focus was on the Henkries low-cost uranium project in the Northern Cape province of South Africa with a ‘clear pathway’ to production.
It currently estimates a mineral resource of 4.7 million pounds of uranium, but ‘wide open for potential new uranium discoveries given less than 10% of prospective ground has been fully tested.’
‘We have joined the market at an opportune time. As the cleanest, cheapest, and safest form of mass power generation, interest in uranium is building momentum. With circa 10% of the world’s power generation coming from nuclear, rising to almost 20% in advanced economies, current inventories are being depleted and no new deposits are being put into production,’ said CEO Heathcote on Thursday.
‘More uranium must be mined to feed existing and new nuclear power plants, particularly in Asia where 60% of the new global reactors are under construction. The upside for uranium companies such as Neo Energy is therefore clear.’
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