Toro Energy launches SPP to boost $10.5m pot for advanced uranium projects

Toro Energy (ASX: TOE) has launched a Share Purchase Plan to raise funds for progressing the company’s advanced stage uranium projects, Theseus and Wiluna, in Western Australia.

Uranium explorer and developer Toro finished the December quarter with A$10.5 million cash. The company now has the chance to increase this by launching the share purchase plan.

Toro is offering shareholders the opportunity to purchase up to A$15,000 worth of shares at an issue price of A$0.08 per share, a hefty discount to the company’s Friday closing price of A$0.10.

Money raised through the placement will be applied to further drilling and project advancement work at Thesus, Resource and brownfields development at Wiluna and ongoing working capital requirements.

Toro managing director Greg Hall said the company was making good progress at both projects.

“Toro is continuing to advance its Wiluna Uranium Project through WA and Federal Government approvals, and anticipates Government decisions by approximately mid-2012,” Hall said.

“This will make Toro‟s Wiluna Project one of the only independently-owned uranium projects around the world to advance to this stage.”

“The continued drilling and project advancement of the exciting new Theseus Project is expected to allow the definition of a JORC compliant resource during the year, and will potentially provide Toro with a further pipeline uranium project.”

Importantly for Toro, uranium development has support from the state government, and the opposition leader has said that if elected, previously approved uranium mines would be allowed to continue development.

The share purchase plan will open on February 15 and is scheduled to close on March 6.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24915/toro-energy-launches-spp-to-boost-105m-pot-for-advanced-uranium-projects-24915.html