GTI Resources has shifted focus to uranium and will divest its Niagara gold project near Kookynie in Western Australia’s Eastern Goldfields.
While the project holds historic workings and multiple exploration areas, the Perth-based company’s attention and assets are pushed towards extensive uranium and vanadium targets sprawled across Wyoming, Colorado, and Utah.
With cash on hand already totalling $4.75 million at the end of last year, the environmentally focused explorer has advanced uranium exploration ambitions, freeing $2m capital via spin-out IPO to Regener8 Resources.
Exploration of Niagara will continue after Regener8’s IPO, intended to raise between $4.5-5.5 million before costs at a share price of 20c, with its predecessor receiving 5 million ordinary shares in addition to performance rights, board representation, and cash upon completion.
The company said the divestment of the assets was crucial to focus its resources on uranium while retaining exposure to the gold project.
“We believe this is a great opportunity to maximise shareholder value in these highly prospective gold assets,” chairman Nathan Lude said.
“GTI will retain a material shareholding, and board representation in a well-funded entity focused on gold exploration in WA.”
Exploration will ramp up stateside for GTI, including at its Thor ISR uranium project in Wyoming’s Great Divide basin, where 40 per cent of drill holes recently exceeded minimum economic thickness.
GTR’s Australian Stock Exchange-listed price is trading at 2c (5:06 am UTC+8 hours)