GTI Energy Ltd (ASX:GTR, OTC:GTRIF) has received firm commitments to raise $2.25 million via the placement of 500 million new shares to existing and new institutional and sophisticated investors.
The placement shares will be issued at $0.0045 per share with one free attaching option for every three placement shares subscribed for, with an exercise price of $0.01 per share and expiring four years from the date of issue.
Newly generated 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.
Rights issue to follow
GTI Energy also intends to offer existing shareholders the opportunity to participate in a non-renounceable pro-rata rights entitlement offer on similar terms to the share placement.
“We are very pleased to have received support in this placement from both existing and new sophisticated investors,” GTI Energy executive director Bruce Lane said.
“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.”
CPS Capital Group Pty Ltd will underwrite the upcoming rights entitlement issue, subject to an agreement, while the company also intends to conduct a Priority Option Issue to existing GTRO option holders.
Planned 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.
A drilling permit has been lodged and is progressing with the State of Wyoming’s Land Quality Division (LQD) review as expected. The company intends to mobilise drilling rigs to Lo Herma as soon as the activity is fully permitted and environmental clearances are finalised.
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.