Alligator Energy Ltd (ASX:AGE) has raised $25.5 million via a share placement that was strongly supported by high net worth and institutional shareholders, both in Australia and overseas.
The placement proceeds will assist the company evaluate and fund potential future uranium and energy mineral opportunities.
They will enable Alligator to enhance work programs at the Samphire Uranium Project in South Australia next year, where key upcoming activities include a feasibility study and mining lease application, and an expanded resource drilling and geophysics program.
Alligator will also be well-funded to continue uranium exploration on targets at Nabarlek North (ARUP) and follow-up drilling at Big Lake.
Substantial funding runway
The company expects this work to generate a strong stream of news flow for Samphire and other projects.
Alligator’s CEO Greg Hall said the total funds raised would provide a substantial runway for the company to progress its advancing Samphire project towards ISR uranium production, at a time which would be perfect for future uranium offtake contracts into an expanding nuclear fuel market.
The placement at $0.052 per share was made at a 23.5% discount to the closing price on September 15, 2023, and an 11.5% discount to the 10-day VWAP.
Share purchase plan
Alongside the placement, Alligator shareholders will have the option to participate in a share purchase plan (SPP) to raise approximately $3 million under the same terms as the placement.
Registered Alligator shareholders at 7.00pm AEST on September 19, 2023, with a registered address in Australia or New Zealand can participate in the SPP and subscribe to up to a maximum of $30,000 worth of shares at an issue price of $0.052.
The company expects the total funds raised to provide a substantial runway to progress its advancing Samphire project towards ISR uranium production. This comes at a time of increasing interest in future uranium offtake contracts into an expanding nuclear fuel market.
Bell Potter Securities Limited and Taylor Collison Limited acted as joint lead managers for the capital raising.
"Important future steps"
Hall said, “Alligator Energy is very pleased to be able to raise these funds to enable the completion of important future steps towards production at the Samphire Uranium Project, beyond the planned Field Recovery Trial (FRT) early next year.
"Based on successful results from the FRT, the funds will be targeted through 2024 towards significant Samphire uranium resource growth, feasibility study, Mining Lease application for approval of the initial economic project, and initial supportively priced and structured uranium offtake agreements.
"Under our COO, Dr Andrea Marsland-Smith, the expanded and very experienced In-Situ Uranium technical, operations and engagement team at Samphire will progress and lead these critical steps, guided by our uranium and resource industry-experienced board.
"The company also sees significant uranium discovery opportunity in its early stage Nabarlek North project in the Alligator Rivers Uranium Province, with first-priority targets now identified.
"Along with this, the Big Lake Uranium project contains the same sedimentary layers which host the Beverley, Four Mile and Honeymoon ISR deposits in an area which has had very little uranium exploration, and with an exploration model based around the world’s largest ISR fields.
"With our experienced exploration team, the company will continue a suitable risk-based value approach to these projects targeting discovery of new uranium resource projects of economic size."
"Alligator has undertaken an ongoing review of additional right-size project opportunities in uranium or energy minerals, particularly around the skill sets of our experienced ISR team and will continue to pursue these," Hall added.