Terra Uranium (ASX:T92) has tapped investors to raise about $700,000 via a placement while the company advances talks with potential ‘large’ joint venture (JV) farm-in and joint-development partners.
The capital raise comes following the conclusion of this year’s International Mining and Resources Conference (IMARC) in Sydney where Mining.com.au, an official media partner, touched base with Terra’s Executive Chairman Andrew Vigar who was amidst all the action.
Vigar says the funds raised through the placement will be used for general and working capital and follows a productive 2023 for the junior explorer.
“In the space of just one year, our HawkRock, Pasfield, and Parker projects have been advanced from conceptual in nature to holding 18 drill-ready target areas. These are tier one, ‘world-class’ targets that will require dedication and time to test.“
The Executive Chairman notes the company is advancing discussions with the aforementioned prospective partners which have shown an interest in directly funding drilling on Terra’s core projects.
Drilling is scheduled to begin in the coming Canadian winter season. Terra’s strategy also includes evaluating other uranium opportunities that complement its core projects in the Athabasca Basin.
The $7.69 million market capitalisation company will issue just under 5.385 million new shares at $0.13 per share with one free attaching new option for every new share issued.
Just under 2.7 million new options will be issued on the same terms as the existing listed options at $0.30 per share with an expiry date of 6 September 2025.
Terra reports the new options will be issued in 2 tranches, the first half along with the new shares and the second half subject to approval at an extraordinary general meeting (EGM).
“Discussions with large JV farm-in and joint-development partners who have shown an interest to directly fund drilling on these highly prospective projects are being advanced, and we look forward to updating the market on progress and hope to be drilling this winter“
Vigar says: “Discussions with large JV farm-in and joint-development partners who have shown an interest to directly fund drilling on these highly prospective projects are being advanced, and we look forward to updating the market on progress and hope to be drilling this winter.
We also continue to assess the market for additional new uranium opportunities. The capital raised will be used for progressing our strategy rather than drilling, and we would like to thank our high-quality investor base for their previous and ongoing support which has enabled Terra to achieve so much to date, and to move into this exciting next chapter of the company’s journey.”
Terra Uranium is a mineral explorer positioned in the Athabasca Basin, Canada, which represents a premium uranium province hosting the world’s largest and highest-grade uranium deposits.
The company floated on the ASX in September 2022 raising $7.5 million through the issue of 37.5 million shares at $0.20 per share.
Peak Asset Management was lead manager for the IPO.
The company holds a 100% interest in 22 mining claims covering a total of 1,008km-square forming the HawkRock, Pasfield Lake, and Parker Lake projects in the Cable Bay Shear Zone on the eastern side of the Athabasca Basin.
Write to Adam Drought at Mining.com.au
Images: Terra Uranium