Amid entering into strategic agreements with ATHA Energy Corp (TSX-V:SASK), Terra Uranium (ASX:T92) is conducting a placement to raise $800,000.
Under the two-tranche placement, sophisticated and institutional investors can subscribe for shares at $0.07 per share. The issue of the second tranche of 1.74 million shares is subject to shareholder approval.
The placement will also include one unquoted option exercisable into one new share, which are being issued for nil cash consideration, and may be exercised at any time before the second anniversary of their date of issue of $0.15 each.
Melbourne boutique and long-term supporter of Terra Uranium, Peak Asset Management will be leading the placement.
Funds raised will be used to advance its portfolio of Athabasca-based uranium exploration properties, including the ATHA Energy projects, subject to completing the relevant option agreements.
Terra Uranium says the funds will also partially pay the consideration payable for the proposed acquisition of the Amer Lake Uranium Project, and general working capital purposes.
Further, the company is also proposing to offer existing shareholders to participate in a share purchase plan (SPP) to raise up to an additional $500,000.
Under the SPP, which will open on 30 August, the issue price for new shares is $0.07.
Terra Uranium is a mineral explorer strategically positioned in the Athabasca Basin in Canada. The company wholly owns 29 claims, covering 1,203km2, which forms the Engler Lake, HawkRock, Pasfield Lake, Parker Lake, Rapid River, and Yurkowski Lake projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Terra Uranium
