Uranium explorer Alligator Energy (ASX:AGE) has received firm commitments from Australian and international institutional and sophisticated investors to raise $25.5 million through a share placement.
The $224.95 million market capitalisation company will issue about 491 million shares at $0.052 per share to raise the funds, which will be used to enhance work programs at its Samphire Uranium Project in South Australia in 2024, including a feasibility study and mining lease application.
Other planned activities include an expanded resource drilling and a geophysics program as Alligator looks to progress the project towards in-situ recovery (ISR) uranium production.
New shares under the placement will rank equally with existing fully paid ordinary shares on issue and are scheduled to be issued on 28 September 2023.
The placement price marks a 23.5% discount to Alligator’s last closing price on 15 September 2023 and an 11.5% discount to its 10-day volume weighted average price (VWAP).
On top of the placement, Alligator plans to launch a share purchase plan (SPP) to raise an additional $3 million under the same terms as the placement.
Bell Potter Securities and Taylor Collison have been appointed lead managers for the capital raising.
This will result in Alligator being ‘well-funded’ to continue uranium exploration on targets at Nabarlek North and follow-up drilling at Big Lake. The news comes at a time of increasing interest in future uranium offtake contracts into an expanding nuclear fuel market.
The proceeds will also be utilised in the evaluation and funding of potential future uranium and energy mineral opportunities and general working capital requirements.
Alligator expects to generate a ‘strong’ stream of newsflow for Samphire and other projects in the upcoming period.
Addressing the capital raise, Alligator Energy Chief Executive Officer (CEO) Greg Hall says: “Alligator Energy is very pleased to be able to raise these funds to enable completion of important future steps towards production at the Samphire Uranium Project, beyond the planned Field Recovery Trial (FRT) early next year.
Based on successful results from the FRT, the funds will be targeted through 2024 towards significant Samphire uranium resource growth, Feasibility Study, mining lease application for approval of the initial economic project, and initial supportively priced and structured uranium offtake agreements.
“Alligator Energy is very pleased to be able to raise these funds to enable completion of important future steps towards production at the Samphire Uranium Project”
Under our COO, Dr Andrea Marsland-Smith, the expanded and very experienced In-Situ Uranium technical, operations and engagement team at Samphire will progress and lead these critical steps, guided by our uranium and resource industry-experienced board.
The company also sees significant uranium discovery opportunities in its early stage Nabarlek North project in the Alligator Rivers Uranium Province, with first-priority targets now identified.
With our experienced exploration team, the company will continue a suitable risk-based value approach to these projects targeting discovery of new uranium resource projects of economic size.“
Alligator Energy is an ASX-listed explorer focused on uranium and energy-related minerals, principally cobalt-nickel.
The company’s Samphire project is located about 20km south of the township of Whyalla on the Eyre Peninsula in South Australia.
Alligator Energy had $18.5 million cash at hand as of 30 June 2023.
Write to Adam Drought at Mining.com.au
Images: Alligator Energy
