Energy Resources of Australia unveiled plans for a significant capital raise through a pro-rata renounceable entitlement offer of new fully paid ordinary shares.
The entitlement offer seeks to raise up to $880 million, priced at $0.002 per share.
It is designed to fund rehabilitation activities for the Ranger Project area. The offer is not underwritten and will be available to eligible shareholders as of Sept. 3.
ERA has secured a binding pre-commitment from Rio Tinto (ASX:RIO), which has committed to subscribe $760 million.
"This equity raise is essential to ensuring we meet our rehabilitation obligations," said ERA's independent board committee.
Shareholders will receive an information booklet regarding the offer on Aug. 29 and can apply for new shares from Sept. 5.
Entitlements can be traded on the ASX from Sept. 6 until Sept. 19, with the offer closing on Sept. 26.
Executives have indicated the full proceeds will support rehabilitation efforts until the third quarter of 2027, with further funding likely required beyond this period.
Energy Resources of Australia is an ASX-listed company whose principal activities consist of site rehabilitation. The company’s Ranger Mine area is located about 8km east of Jabiru and approximately 260km east of Darwin, in Australia's Northern Territory. It also holds title to the Jabiluka mineral lease.
At the time of reporting, Energy Resources of Australia’s share price was $0.007.