Odessa Minerals (ASX:ODE) has raised $1.1 million through an oversubscribed placement to professional and sophisticated investors.
The funds will be used to continue exploration and drilling at the Lyndon Uranium Project, specifically targeting Relief Well and Baltic Bore.
The placement will be conducted in two tranches: the first, comprising 225 million new shares, will be issued immediately under the company's existing placement capacity.
The second tranche, consisting of 331.25 million new shares, will require shareholder approval at Odessa’s annual general meeting in November.
Non-Executive Chairman Zane Lewis has committed $100,000 in the second tranche.
Zane Lewis, Chairman of Odessa, expressed his satisfaction with the placement stating, "I am very pleased to receive commitments for $1.1 million from a highly supportive group of long-term investors, who share our vision at Odessa. This placement will ensure Odessa is well-funded for the upcoming exploration and drilling program at Lyndon."
The issue price for the new shares is $0.002 per share, which is equivalent to the last closing price on Sept. 25 and represents a 23.9% discount to the 15-day volume-weighted average price of $0.00263.
The proceeds will also provide general working capital for Odessa.
Odessa Minerals is an ASX-listed company holding exploration licenses in Western Australia's Gascoyne region, an area known for significant recent lithium and rare-earth element discoveries.
At the time of reporting, Odessa Minerals' share price was $0.0040.