Vimy plans to use the funds primarily to complete the definitive feasibility study for its Mulga Rock project 240km north-east of Kalgoorlie in Western Australia.

The company said new institutional and sophisticated investors were introduced through the issue of 43 million ordinary shares at 14c each.

“We’re very happy with the overwhelming response from investors who appreciate the positive outlook for uranium and its place in the world as the best source of clean energy,” managing director Mike Young said.

Vimy announced a 17% increase earlier this month to its Mulga Rock resource, which contains 90.1 million pounds of uranium.

Mulga Rock is one of four uranium projects in WA allowed to proceed after the state government announced last month it would block any new uranium mining applications.

Vimy said it would assess mining scenarios and staged capital implementation plans, update its ore reserve and submit secondary permits to ensure the project was construction ready by mid-2018.

Morgans Corporate was lead manager and bookrunner for the placement.

Shares in Vimy were down 5.5% in morning trade to 17c, capitalising the company about $53.9 million.