OAR Resources (ASX:OAR) has successfully secured $1 million in a recent Placement, accelerating acquisition processes for Exclusive Prospecting Licences in Namibia and initiating exploration activities for rare earth elements (REE) and uranium in Brazil.
Placement details
The Placement, which received firm commitments from both new and existing sophisticated investors and shareholders, reflects strong investor confidence in the company’s strategic expansion efforts.
This injection of funds significantly bolsters OAR’s financial position, enabling it to pursue the planned expansion of its global portfolio.
The company will expedite the acquisition processes for the two Exclusive Prospecting Licences recently granted to OAR in Namibia, while also kickstarting on-ground exploration activities for REE and uranium in Brazil.
Exploration progress
The capital raised by OAR will provide ample funding to progress the completion of due diligence on EPL 9652 and 9725 in the Erongo Region of Namibia, Africa.
Specifically, it will support environmental studies necessary for obtaining an Environmental Clearance Certificate and expedite exploration planning and activities across these licenses, including fieldwork and preparation for a potential maiden drilling program.
Situated in a renowned uranium jurisdiction, these EPLs adjoin Deep Yellow’s Tumas Project and Bannerman Energy‘s Etango Project, which are strategically positioned along strike from major uranium deposits like Husab, Rossing, Valencia, and Norasa.
Additionally, raised funds are expected to enable surface scintillometer surveys and radiometric geophysical surveys, aiding the company in pinpointing priority areas for upcoming air-core and reverse circulation drilling programs.
Company commentary
Paul Stephen, Chief Executive of OAR Resources, is optimistic that the company’s strategic diversification will prove lucrative for new investors.
“We are pleased to welcome new investors onto our share register at an exciting time for the Company as we strategically diversify and expand our portfolio with highly prospective tenements secured around the world,” he said.
“The acquisition in Namibia is significant, with both EPLs located close to a well-known uranium-enriched structural corridor and considered prospective for multiple styles of uranium mineralisation.
“This funding raised by our dedicated shareholders will take us another step closer to commencing initial exploration activity across these recently acquired Namibian tenements, as well as early-stage reconnaissance work at the Company’s REE and Uranium Projects in Brazil.
“I thank our new and existing shareholders for their support, as we advance our global exploration journey, aimed at unlocking high-quality and in-demand resources,” Stephen added.
OAR’s Australian Security Exchange-listed share price is currently trading at $0.002 (11:30 am UTC+ 8 hours).
