Canadian uranium exploration and development firm Forsys Metals plans to raise about C$2.2m ($1.6m) through a non-brokered private placement for its Norasa uranium project in Namibia.

It includes 16.9m units in the company at a subscription price of $0.13 per unit.

The company will use proceeds from the private placement for funding the Norasa uranium project in Namibia, and for general working capital requirements.

Forsys has received a firm commitment from Leo Fund Managers, the company’s largest shareholder, under which Leo will subscribe on behalf of several of its funds for 7.9 million units for gross proceeds of C$1.03m ($0.79m).

Forsys Metals chief executive officer Marcel Hilmer said: "A further investment in the Company by Leo, a leading European financial services company based in London, demonstrates a continuing commitment by Leo to the Company specifically and the uranium industry in general."

The Norasa project features the fully permitted Valencia uranium development and the Namibplaas development.

The Valencia deposit is locate about 80km from the coastal town of Swakopmund. It is located 35km along strike to the Rössing uranium mine which has been in production for more than 30 years and 50km north of the Langer Heinrich uranium mine.

Last year, Forsys updated its initial scoping studies, pit optimization, metallurgical environmental and economic studies for the development of Norasa.

The mineral resources are reported above cut-off grades of 100ppm and 160ppm U3O8 for Valencia and Namibplaas, respectively.