Boss Resources (ASX:BOE) is raising $3mln via a placement of shares at $0.05 each to advance its Honeymoon Uranium Project in South Australia.
The placement is being made to new and existing sophisticated investors.
The company’s Honeymoon project is a high-grade sandstone hosted uranium project on a granted mining lease.
Boss recently completed a drill hole programme at Honeymoon in preparation for the commencement of a field leach trial, which is an integral part of the ongoing definitive feasibility study.
Importantly, the company had completed a preliminary feasibility study in May 2017, which confirmed a highly economic project.
Boss estimates a low capital outlay of US$10mln to re-start the existing solvent extraction plant for the production of 0.88 mln pounds per annum of uranium.
Importantly, all-in-sustaining costs of US$23.90 per pound of uranium is projected over the life of mine, which is among the lowest cost quartile of world-wide uranium producers.
The project has a significant potential for economic upside with further resource expansion and life of mine extension.