URU Metals (LSE:URU) raised £1.25 million before expenses through an oversubscribed placing of 50 million new shares at 2.5p each, arranged by broker Axis Capital Markets.
The AIM-listed critical-metals explorer will direct proceeds mainly towards mobilising and executing an eight-hole diamond drilling programme at Zone 2 of its Zeb Nickel Project in Limpopo, South Africa, alongside the geological, analytical and technical work needed to build towards a maiden mineral resource estimate.
URU has selected Zaaiman Exploration Drilling as preferred contractor, following a final commercial evaluation process the company flagged earlier this month covering rig availability, mobilisation timing and safety performance.
The programme, designed from URU's recently completed Leapfrog 3D geological model, comprises approximately 3,850 metres across eight holes drilled in pairs from four shared pads, testing both the shallower sub-crop position and the down-dip extension of Zone 2 mineralisation, which the model indicates remains open at depth.
Zaaiman intends to deploy two diamond rigs, with the first expected to start once mobilisation and site-readiness work, including land access, water supply and drill-pad preparation, is complete; the second rig follows as the programme ramps up.
"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," said chief executive John Zorbas.
Initial holes will target the higher-grade southeastern portion of Zone 2, identified in URU's modelling as the priority area, before testing continuity into less-defined ground.
Following admission of the placing shares, URU's issued share capital will stand at 146.96 million shares.
Drilling is expected to begin within weeks and run over several months, with core processing and assay results reported progressively rather than after all eight holes are complete.