American Uranium (ASX:AMU) is raising $2.64 million through a placement following a recent upgrade to the Lo Herma Project’s resource in Wyoming, US.
The company will issue 22 million shares at $0.12 each, representing a 7% discount to the five-day volume weighted average price.
Frontier Nuclear and Minerals (NASDAQ:FNUC) has agreed to participate in the placement, maintaining its 9.92% stake in American Uranium.
Shareholders will also receive one free attaching option for every two held, subject to shareholder approval. Options will be exercisable at $0.16 each and will expire on 30 June 2029.
CPS Capital Group is acting as the lead manager for this placement, with allotment expected to occur on or around 16 April 2026.
Funds will be used for further resource expansion and infill drilling at Lo Herma, along with continued hydrogeological and metallurgical studies, the completion of a Scoping Study, property acquisitions, and landholding costs.
Meanwhile, American Uranium is also conducting a non-renounceable entitlement offer to raise an additional $2.58 million on the basis of one new share for every six held.
Entitlement offer shares will hold an issue price of $0.12 each, with subscribers to receive one-for-two free attaching options, exercisable under the same conditions as the placement’s free attaching option deal.
Executive Director Bruce Lane says the company is pleased with the support from new and existing shareholders, including Frontier Nuclear’s continued involvement.
“The placement will fund permitted Q2 drilling and key technical work at Lo Herma following the 9.45 million pound resource upgrade, ahead of the Q3 2026 Scoping Study,” Lane says.
“We look forward to offering all existing shareholders the opportunity to participate in the upcoming entitlements offer on the same terms as the placement subscribers, with timing to be confirmed.”
American Uranium is focused on advancing the Lo Herma In-Situ Recovery Uranium Project located in Wyoming’s Powder River basin in the US.
Write to Maddison Elliott at Mining.com.au
Images: American Uranium
