URU Metals Limited (LSE:URU) has raised £1.25 million before expenses through an oversubscribed share placing, with the proceeds primarily earmarked for a new drilling programme at its Zeb Nickel Project in Limpopo, South Africa.
The mineral exploration and development company placed 50 million new ordinary shares at 2.5 pence each. The fundraising was arranged by broker Axis Capital Markets Limited.
URU said the funding will support the mobilisation and execution of an initial eight-hole diamond drilling campaign at Zone 2 of Zeb, alongside geological, analytical and technical work intended to advance the area towards a maiden Mineral Resource Estimate.
The planned programme comprises approximately 3,850 metres of NQ diamond drilling, with eight Priority 1 holes to be drilled from four shared pads. Each pad will host two holes at different inclinations, allowing the company to investigate both shallower mineralisation and the down-dip continuation of the Zone 2 system.
Drill locations and orientations were selected using URU’s completed Leapfrog 3D geological and mineralisation model. The model identified several coherent mineralised envelopes at Zone 2, with the higher-grade southeastern part of the system selected as the priority area for further drilling.
URU said the campaign is intended to increase drilling density and geological confidence in Zone 2 and generate sufficient geological and assay information to support preparation of an initial resource estimate.
Preparations for mobilisation are already underway after Zaaiman Exploration Drilling was selected as the preferred drilling contractor. The programme will be carried out through Lesego Platinum Uitloop (Pty) Ltd, which holds the Mining Right covering the Zeb Nickel Project.
Pre-mobilisation work includes contractor onboarding and mine safety documentation, securing access to drill sites, arranging water supplies, preparing drill pads and access routes, establishing core-handling facilities and finalising laboratory and quality assurance procedures.
Zaaiman plans to deploy two NQ diamond drill rigs. The first is expected to begin operating once mobilisation and site-readiness work has been completed, with a second rig to be introduced as the drilling campaign gathers pace.
Drilling is expected to start in the coming weeks and continue for several months. Core logging, photography, measurement, sampling and independent laboratory analysis will take place progressively during the campaign, allowing URU to release operational and assay updates as work advances rather than waiting until all eight holes have been completed.
Alongside drilling, proceeds from the placing will fund site establishment and security, geological supervision, core processing, independent assays and QAQC, metallurgical testwork, land access and community engagement, further three-dimensional geological modelling and technical work associated with the planned Mineral Resource Estimate. A portion will also be used for general working capital.
Chief executive John Zorbas said the company’s immediate priority was establishing the drilling contractor on site and beginning drilling once the necessary safety, access and site-readiness requirements had been completed.
“Preparatory work for mobilisation is underway and our immediate focus is on getting the drilling contractor established on site and the first rig turning as soon as the required safety, access and site-readiness work has been completed,” Zorbas said.
He added that the structure of the programme should allow geological and assay information to emerge throughout the campaign, providing shareholders with a series of operational and technical updates as drilling progresses.
The 50 million placing shares will rank equally with URU’s existing ordinary shares. The company expects the new shares to be admitted to trading on the London Stock Exchange at 8:00 a.m. on or around 6 October 2026.
Following admission, URU Metals will have 146,963,703 ordinary shares in issue.
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