GTI Energy (ASX:GTR) is conducting a two-tranche placement to raise $4.5 million which will fund resource growth at the Lo Herma In-Situ Recovery Uranium Project in Wyoming, US.
Under the placement, shares will be issued at $0.0035 per share, representing a 16.7% premium to the last closing price of $0.0030.
Alpine Capital and CPS Capital Group are acting as joint lead managers to the placement.
GTI, which has a market capitalisation of $9 million, will use the funds primarily for resource expansion and conduct infill drilling at Lo Herma.
The funds will also be used for further hydrogeological and metallurgical analysis, landholding costs, and general working capital.
Executive Director Bruce Lane says the company is “thrilled” by the backing from investor US-focused uranium and nuclear company Snow Lake Resources, which trades as Snow Lake Energy (NASDAQ:LITM).
Snow Lake’s participation in the placement will result in a holding of 9.9% of GTI’s pro-forma shares. Snow Lake will also hold the right to appoint one director to the board, subject to completing the placement.
GTI’s board of directors are also participating in the placement for a total of $60,000, subject to shareholder approval.
Further, the company intends to seek shareholder approval for a company name change at the next extraordinary general meeting. The details of these changes will be included in the meeting documents which will be sent out within two weeks.
Lane adds that the placement provides the company with a financial runway to advance Lo Herma to the next phase of drilling and field work.
“We look forward to building on the positive baseline economics established in our recently completed Scoping Study, further strengthening the investment case for Lo Herma,” Lane says.
“Snow Lake’s commitment is strategically significant due to the proximity of its 50:50 joint venture Pine Ridge Project, which adjoins Lo Herma along trend.”
The Lo Herma Project contains a resource of 8.57 million pounds of uranium-equivalent, with 2.78 million pounds in the indicated category and 5.79 million pounds in the inferred category.
GTI Energy is a uranium developer focused on defining economic in-situ recovery uranium resources.
In-situ recovery mining is a low-cost and low-impact way to mine uranium. GTI aims to define in-situ recovery amenable uranium resources in Wyoming.
Write to Aaliyah Rogan at Mining.com.au
Images: GTI Energy
