URU Metals is fast turning into a driving force in lithium exploration. The mining contractor, which is listed on the Alternative Investment Market of the London Stock Exchange, has a portfolio consisting of large exploration projects as well as joint venture projects in North America, Europe and Africa.
The company has revealed that it has managed to raise £535,000 to identify and evaluate different opportunities that lie in lithium exploration and extraction. URU Metals raised this investment at a premium after it placed 11.9 million shares on the stock market. The price for each share was pegged at 4.5p, which was much higher than Friday’s closing price of 2.5p. Niketo already owns a 16.1 per cent stake in URU Metals, and it picked up an additional 2 million shares as a result.
URU Metals stated that the cash raised from the share sale will help it to look more deeply into possible acquisitions in the lithium industry, and if it finds any profitable project or proposal, it will be well-placed to proceed further.
URU Metals CEO John Zorbas said the fact that the shares were sold at a premium indicates that investors are interested and positive about the existing projects as well as the plans that the company has to expand its portfolio. Zorbas hopes that the funds raised will help the company explore other opportunities in the lithium industry, something that it is already doing.
Lithium has become a sought-after metal in recent months as it is one of the most important components in lithium-ion batteries, which are used in electric cars as well as other things. With hybrid and electric car sales surging in the UK, a report has estimated that by 2050, nearly 1.7 billion electric vehicles will be sold and will capture nearly three-quarters of the automobile market.
Given the importance of lithium for the automobile industry, stock promoter David Lenigas has called lithium the new oil.