PERTH (miningweekly.com) – Uranium developer Energy Minerals of Australia (EMA) on Monday announced that it would raise A$12-million in equity while also restructuring its A$24.5-million debt.

The two transactions would restructure EMA’s balance sheet and increase its net assets by A$36.5-million, the company reported.

EMA has entered into a binding term sheet with mining magnet Andrew Forrest’s Forrest Family Investment to raise the A$12-million by way of a capital raising.

The uranium developer would issue 400-million shares to Forrest Family Investment, at 3c each. One free unlisted option would be attached to each placement share, and would have an exercise price of 5c each, and an expiry date of June 2016.

On the completion of the placement and the note conversion, Forrest Family Investment would hold a 27.86% interest in EMA.

The placement and note conversion was subject to shareholder approval.

Meanwhile, EMA has also reached an agreement with its current note holders that the debt owned to them would be repaid in shares, subject to certain conditions.

As a result, about A$24.5-million of debt would be eliminated and converted into shares.

Following the issue of the placement shares, Macquarie would hold a 20.98% interest in EMA, while investment group Acorn Capital and its clients would own a 23.21% interest in the company.

The debt conversion was also subject to shareholder approval and the completion of the placement with Forrest Family Investment.

“Raising the A$12-million in equity and eliminating all of EMA’s A$24.5-million debt will increase the company’s net assets by A$36.5-million and provide EMA with a strong balance sheet and a more normalised capital structure,” said EMA MD Mike Young.

He noted that the company was now set to move forward its Mulga Rock uranium project, in Western Australia, to meet uranium demand.

EMA was hoping to develop a 1 400 t/y uranium mine at Mulga Rock, with a mine life of 15 years. The project was estimated to require a capital investment of about A$300-million.