Alligator Energy (ASX:AGE) has received commitments to raise $17.25 million to extend its work programs across 2025-26 for the Samphire Uranium Project in parallel with the group’s Samphire Field Recovery Trial (FRT).
The company will issue 556 million shares at $0.031 per share offering one option per every two shares issued exercisable at a price of $0.047. Subject to shareholder approval, this rate represents around a 50% premium to the placement issue price.
Bell Potter Securities and Taylor Collison acted as joint lead managers for the aforementioned placement.
CEO Greg Hall said while this raise is crucial for the company to complete its current exploration, Alligator, which has a market capitalisation of $154.94 million, will use remaining funds to extend workings beyond the FRT and into a Definitive Feasibility Study.
“Once Alligator has received its approved operating plan (Program for Environment Protection and Rehabilitation – PEPR) allowing us to commence construction of the FRT, our approvals team will swing onto pre-work in readiness for the mining lease approval,” Hall says.
Alligator believes shareholders will see a stream of “value-enhancing” news flow to the market, in conjunction with uranium price trends.
“This value will be augmented by the anticipated strength in the spot uranium price due to macro tailwinds, including AI driven data centre power demand driving nuclear programs globally, along with the potential Sprott Physical Uranium Trust spot market uranium purchases after its US$200M capital raising,” Hall says.
The uranium price at US$77.55 per pound ($119.82) as at 24 June increased 7.7% over the past month.
Sprott Physical Uranium Trust’s (NYSE:SII) intent to purchase US$200 million of physical uranium comes following a greater focus in pricing year-to-date.
Predominantly mined in Kazakhstan, the World Nuclear Association reported that the country produced 43% of the world’s supply of uranium in 2022.
Alligator Energy will be attending the Noosa Mining Investor Conference, held between 23-25 July, at the Peppers Noosa Resort.
Write to Maddison Elliott at Mining.com.au
Images: Alligator Energy
