The ASX-listed metals explorer and developer issued 319 million premium-priced new shares to continue its exciting Hook Lake drill, plus a more comprehensive exploration of Canada’s Athabasca basin in search of the highly sought-after yellow cake.
The placement marks timely progress amidst anticipated uranium demand to rise as energy firms are set to phase down coal usage following the COP26 deal in Glasgow.
The company intends to use the money for new and follow-up drilling, airborne studies, sampling, assaying and downhole geophysical work at the Hook Lake and Cluff Lake Projects. The company will also compile historical data in preparation for drilling at its five other Athabasca projects by the end of next year.
A construction camp planning has begun while finalising a drilling contractor to start exploration at Hook Lake early in the new year.
“Both Dahrouge Consulting and Terra Resources have undertaken significant work to compile all data, both historical and recently completed activity by Valor in 2021 to plan the drill program,” executive director George Bauk said.
“We have put the effort in to ensure we have designed the drilling program to target our highest priority targets.
“The team is well credentialed with experienced geoscientists who have explored uranium across many continents, particularly the Athabasca Basin.
“We have seven quality projects and following the completion of the drilling program at Hook Lake, we will have a group of geoscientists continue working on the other properties.
“Cluff Lake will be the initial focus, but we will continue to look for quality exploration targets on all of our projects in the Basin.”
AU$5.4 million (before costs) from the placement of 319 million shares at a price of $0.0172 per share.
This represents a 7 per cent premium to the last closing price of Valor shares on 22 November 2021 of AU$0.016 per share and a 4pc discount to the 15-day volume-weighted average price of Valor shares to 22 November 2021 of $0.0178 per share.
The company issued the new shares at a premium as they were issued under the Canadian flow-through share regime, which provides tax incentives to eligible investors for expenditures that qualify as “flow-through” mining expenditures under the Income Tax Act.