Energy Resources of Australia to raise $598 million for uranium project

Energy Resources of Australia (ERA) said on Wednesday that it will raise A$880 million ($598.5 million).

The uranium miner will raise the capital at an offer price of A$0.002 per share, a 87.5% discount to its close last Friday before it halted trading on Monday.

The company resumed trading earlier on Wednesday.

It will use the proceeds to fund the rehabilitation of the Ranger project area, a mine in the Northern Territory, until the third quarter of 2027, it said.

Rio Tinto, which holds an 80% stake in the company, will subscribe for shares worth A$760 million, lifting its voting power to up to 99.2% in ERA.

ERA’s board had appointed advisers for a potential equity raise in early March.

($1 = 1.4704 Australian dollars)

(By Sherin Sunny; Editing by Sonia Cheema)