Uranium Resources has raised GBP3.93m ($6m) for the development of its Mtonya uranium project in Tanzania.

The firm has placed 163.75 million shares at a price of 24 pence per share and proceeds will be used to fund operations at Mtonya as well as to identify and develop additional resource opportunities.

The last four holes drilled at the project encountered uranium mineralization with three of these holes intersecting uranium grades of over 100 part per million.

The two holes intercepted a previously unknown mineralized feature below at depths over 300m, reports proactiveinvestors.

Currently, a large scale drill programme at the project is being carried at the site.

Uranium Resources expects the 2012 drill programme will significantly extend the known mineralization and allow it to complete a maiden resource estimate in 2013.