GTi Resources has increased uranium prospective ground to over 14,000 hectares following the strategic Acquisition of nearly 5600 additional hectares of prime yellow cake properties at Wyoming’s Green Mountain in the US state’s prolific Great Divide Basin.
Constrained supply has recently pushed uranium to an 11-year high of $60 a pound with the colossal 95-gigawatt US nuclear energy sector alone, relying on sanctioned Russia to supply 16 per cent of the silver-grey heavy metal to power 93 commercial reactors throughout the country.
The properties —close to Energy Fuel’s 30Mlb Sheep Mountain, Ur-Energy’s Lost Soldier, Rio Tinto’s Jackpot and UEC’s Antelope deposits — boast hardly touched mineral lode claims prime for exploration.
The company has entered a binding term sheet agreement to acquire 100 per cent of landholder Logray Minerals with immediate plans to explore multiple roll fronts using $5 million placement funds to accelerate the programme.
The company said it is upbeat about success following recent drilling, buoyed by the burgeoning uranium market and its increasing understanding of the conditions for successful ISR recovery.
“With the help of historical Kerr McGee drilling information and oil well drill logs, [we have] identified several exploration target areas which will be further evaluated and progressed towards permitting and drilling as soon as practicable leading up to and after settlement of the acquisition,” the company said.
In connection with the Acquisition, GTI is conducting a placement of 240,000,000 Shares at an issue price of $0.021 to raise $5,040,000 (before costs) with one (1) free attaching listed GTRO option to be issued to subscribers (Placement Option) for every four shares subscribed (Placement or Capital Raising). Placement Shares will be issued using the company’s existing capacities pursuant to ASX Listing Rules 7.1 (150,150,517 shares) & 7.1A (111,211,456 shares), and the Placement Options will be issued subject to GTI shareholder approval.
The funds raised from the Capital Raisings will be used to fund the Acquisition, exploration of the Properties, pay costs of the Capital Raising and for working capital. CPS is the lead manager and arranger to the Placement and will receive a 6% capital raising cash fee for the funds raised in the Placement plus 20,000,000 listed GTRO options and, subject to shareholder approval, one (1) listed GTRO option for each ten (10) shares subscribed (Broker Fee Options) under the Placement (Capital Raising Fee).
A notice of meeting seeking, among other things, approval for ratification of the Placement, the issue of Consideration Shares, Placement Options & Broker Fee Options will be provided in the coming weeks.
GTR’s Australian Stock Exchange-listed share price was 2.5c (1: 56pm UTC+ 8 hours).