News: Vimy Resources lands $30M uranium funding from Resource Capital Fund

Uranium company Vimy Resources (ASX:VMY) has landed $5 million in upfront equity funding and up to $30 million in total from private equity fund Resource Capital Fund VI L.P.

RCF is a uranium bull and also holds a 19.6% stake in near term 2015 U.S. uranium producer Peninsula Energy (ASX:PEN).

The fund will subscribe $5 million in equity through a share placement at $0.30 per share through the issue of 16,666,667 fully paid ordinary shares and an additional 1,500,000 shares as an up front fee.

Vimy is developing its 100% owned Mulga Rock Uranium Project northeast of Kalgoorlie in Western Australia and is at Pre-Feasibility Study stage. This is expected to be delivered in Q3 2015.

A recent scoping study over Mulga Rock, which is the third largest undeveloped uranium deposit in Australia, found it would be profitable even at today’s long term pricing for uranium contracts.

Total resource stands at 59.7 million tonnes at 550ppm U3O8 for a contained 72.7 million pounds of U3O8 with a life of mine of  16 years.

70% of the uranium mining inventory for the first 7 years is from higher confidence Indicated Resources.

C1 costs for life of mine are US$29 a pound of U3O8 including by-product credits. The breakeven price for the project is US$46 a pound of U3O8 including capital payback.

The total $30 million package, if completed, is expected to fund Vimy through to project financing of the Mulga Rock Uranium Project.

This comprise of $10 million cash in exchange for a 1.15% royalty on all revenue from the Project and a $15 million, unsecured bridging loan with a 31 March 2017 repayment date.