Basin Energy (ASX:BSN) has received firm commitments to raise $3.3 million through a share placement of 20.9 million shares at $0.16 per share.
Canaccord Genuity, Discovery Capital, and Cumulus Wealth Management are acting as joint lead managers to the offer.
Basin, which has a $15.44 million market capitalisation says the placement has received ‘exceptional’ support from existing and new domestic and offshore institutions.
Funds will be used towards a proposed maiden drilling program at the North Millenium Project about 7km north of Cameco’s (NYSE:CCJ) Millennium uranium deposit, which holds about 104.8 million pounds of triuranium octoxide at an average grade of 3.76%.
They will also be used to complete Q1 ground geophysics at North Millenium and the Marshall Project, Q1 drilling at the Geikie Project, and Q2 drilling at North Millenium.
Managing Director Pete Moorhouse says: “Basin is delighted by the support received by the offer, and the exceptional standard of institutional investment we now add to our existing quality register. Basin controls a premium land package with multiple exceptional uranium exploration prospects.
On behalf of the Basin board, I would like to thank our existing shareholders for their ongoing support and welcome new holders as we continue to explore in the heartland of the world’s premier uranium district.”
The placement represents a 13.5% discount to the last-close on 31 January 2024 ($0.185) and a 10.4% discount to the 15-day volume weighted average price ($0.179).
Basin Energy is a uranium explorer and developer with an interest in 3 ‘highly prospective’ projects positioned in the southeast corner and margins of the Athabasca Basin.
As of 30 December 2023, Basin Energy had $3.4 million cash and cash equivalents at hand, according to its latest quarterly report. However, the company is looking to add an extra $3.3 million through today’s (2 February 2024) placement.
Write to Adam Drought at Mining.com.au
Images: Basin Energy
