GTI Energy Ltd (ASX:GTR, OTC:GTRIF) is following up a recent placement that raised A$2.25 million with a partially underwritten non-renounceable pro-rata rights entitlement offer to raise up to A$2,294,952, before costs.
Eligible shareholders registered at the record date of Monday, August 12, will be offered one new share for every five existing shares at $0.0045 per new share, which is the same price as the placement. as well as one free attaching new option for every three new shares subscribed for and issued.
Each new option will have an exercise price of $0.01 and entitle the holder to subscribe for one new share before their expiry at 5:00 pm (WST), four years from their date of issue.
Funds raised will primarily be used to fund the development and exploration of the company’s uranium projects in Wyoming and Utah.
Shortfall offer
Shareholders will also be invited to apply for additional new shares under the shortfall offer which will be allocated at the company’s discretion in conjunction with the lead manager, CPS Capital Group Pty Ltd, which has agreed to partially underwrite the offer to $1.6 million.
In addition, existing GTRO option holders will be offered one new option for every four GTRO options, owned on the relevant record date, at an issue price of $0.0005 per new option to raise up to $57,798.39.
The issue of new options under the entitlements issue offer and the priority option offer is subject to shareholder approval.
New funds will go to a scoping study and resource drilling at the Lo Herma in-situ recovery (ISR) uranium projection Wyoming as well as advancing exploration at the company’s Green Mountain and Utah projects.
READ: GTI Energy raising $2.25 million in placement for resource drilling and scoping study at uranium projects; plans rights offer
Following the placement, GTI Energy executive director Bruce Lane said: “We are very pleased to have received support in this placement from both existing and new sophisticated investors.
“We look forward to our July resource drilling campaign knowing that we will be well funded to advance the company’s flagship Lo Herma project towards an expanded resource and a scoping study.
“We look forward to being able to offer all shareholders the opportunity to participate in our planned rights issue on the same terms as the placement.”
Lo Herma drilling
The planned Lo Herma 2024 drilling program will include 71 holes drilled and the construction of up to five groundwater monitoring wells, expected to begin in July.
GTI Energy has contracted its preferred Wyoming-based exploration drilling contractor for this work which will focus on expanding the resource areas and where possible, upgrading the current mineral resource classification.
Once drilling is complete, GTI intends to publish an updated mineral resource estimate and exploration target range for Lo Herma, which will support a scoping study to demonstrate the economic potential of the project.