In the midst of a capital raise from shareholders, Toro Energy (ASX: TOE) has continued its rush of news flow, today announcing the intersection of Nickel sulphide deposits, adding to their recently discovered Vanadium and Gold to go with their flagship resource, Uranium.
As part of their exploration program into their Yandal Gold Project, located in the historically gold-rich Yandal Gold Belt, a recent drill hole has returned the presence of Nickel sulphides with similar geological properties to those found in the Mt Keith Nickel Mine, located 50km east of Toro’s project.
It’s been a busy month for Toro with the launch of a Share Purchase Plan aiming to raise a minimum of $3.5 million from shareholders, which is being fully underwritten by Patersons Securities.
Funds raised will be used to undertake a 4,000m drill program at the Yandal Gold Project, as well as retire $2m of debt.
Since the start of the capital raising campaign, Toro has reported a maiden Vanadium JORC resource within their Wiluna Uranium Project containing a total of 68.3 million pounds of Vanadium pentoxide with V2O5 currently trading around USD$7.05 per pound.
Beyond their new Vanadium asset, the Company has also this month confirmed Gold intersections of 1m @4.35g/t, 2m @ 2.15g/t and 5m @0.94g/t.
It has been a long journey thus far for Toro Energy shareholders, whose flagship asset is their Wiluna Uranium Project which has a JORC resource containing 62 million pounds of Uranium.
Following the 2011 Fukushima disaster, however, the global uranium market has been subdued due to a drop off in demand for nuclear power, which has prompted many uranium developers to seek alternate revenue streams.
Should Uranium prices return to levels beyond $30/lb, Toro has the potential to advance their Uranium assets, as just one of three companies currently permitted to mine Uranium in Western Australia with no new permits to be granted under the current State Government.
Toro Energy announced extensions to their Share Purchase Plan on 18 October and 28 October.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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