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A total of A$40 million has been raised by Toro Energy Ltd as the emerging uranium project developer forges ahead to have first production from its key Western Australian uranium project by 2012.

Proceeds from the capital raising will be sufficient to fund all approvals and completion of a bankable feasibility study by 2011 for Toro’s Wiluna Uranium Project in Western Australia along with other project and consolidation opportunities. The funds were raised via oversubscribed placements at 15 cents per ordinary Toro (ASX:TOE) share to a raft of Australian and international institutions and professional investors.

Toro’s major shareholder, Oz Minerals Limited (ASX:OZL), also elected to contribute nearly half of the total raised to maintain its 49.9% shareholding in Toro, which is also developing the Napperby uranium project northwest of Alice Springs, and uranium prospective ground in South Australia and the African state of Namibia. A Share Purchase Plan has also been announced by Toro to allow its retail shareholders the same opportunity to participate at the placement terms.

Toro’s Managing Director, Mr Greg Hall, said today the increasingly strong support from the senior end of the equities market was a vote of confidence in the momentum and strategies behind the Company’s drive to develop a near-term Australian uranium mining and project development business.

“To have a further expression of support from our major shareholder, OZ Minerals, also reflects the underlying potential within the portfolio of uranium assets assembled to date and we may look to add to that as we move our flagship projects towards production,” Mr Hall said.

“Significantly, the proceeds announced today will now enable Toro from next month, to commit to and fully fund a bankable feasibility study and the approvals process for our wholly owned Wiluna uranium project so that we anticipate being able to make a development decision in 2011 to stay on track for first production in 2012.”

“The proceeds also provide Toro with the opportunity to advance our other project and exploration work elsewhere in WA as well as Napperby in the Northern Territory, and to take advantage of consolidation opportunities in the sector.”