Terra Uranium Ltd (ASX:T92) shares surged as much as 80% higher intra-day on its first day of trading on Thursday, following an oversubscribed initial public offer (IPO) that raised $7.5 million at $0.20 per share.
T92 shares were last trading at $0.32, up 62.5%.
The Athabasca Basin, Canada focused uranium explorer has listed on the ASX at a time when uranium prices have nowhere to go but up as rising energy costs force countries to embrace nuclear power.
T92 has a portfolio of three wholly owned projects in Athabasca Basin, Canada, which contains the world’s largest and highest grade uranium deposits.
The company’s three projects cover a total of 775 square kilometres in the eastern Athabasca Basin.
Many countries have recently re-evaluated their stance on nuclear energy in the wake of the Russian invasion, with Japan confirming that it would restart seven more nuclear reactors, bringing the total number of plants back into operation to 17.
Germany said this week that it would keep two nuclear plants on standby beyond the end of the year in a policy U-turn, as the shut-off of Russian gas has sent Europe scrambling for energy sources.
Regional project locations.
T92 is targeting greenfield discovery and brownfield developments close to existing production infrastructure.
The Athabasca Basin hosts some of the largest and highest grade uranium deposits in the world, including Cigar Lake, McArthur River, Arrow, Triple R, Millennium and Wheeler River.
T92’s three projects - HawkRock, Parker Lake and Pasfield Lake - are focused on the interpreted Cable Bay Shear Zone of the Athabasca Basin.
Simplified Athabasca uranium deposit model.
T92 is led by a board and management team with years of experience in uranium exploration, development and, importantly, production.
The company’s dedicated exploration team is based locally in Saskatoon, Canada.
T92 is planning to explore for uranium within the Cable Bay Shear Zone which is a major structural trend that is poorly explored.
Depth to basement is interpreted to be 250 - 950 meters in the company’s projects, which is comparable to depths at known deposits on the eastern side of the basin which is host to major uranium deposits.
Cable Bay Shear Zone and interpreted depth to basement contours.
T92 believes a large uranium deposit will potentially have developed a coherent and large-scale uranium geochemical halo.
The company intends to utilise reverse circulation drilling and geochemical sampling to depths 200 metres below surface to test for uranium geochemical halos.
To identify the most prospective drill target areas, T92’s strategy is to combine existing historical geochemical and geophysical surveys to map potential host rocks and alteration signatures on all three projects.
Drill targets will be refined based on the combined geophysical and geochemical targets and reverse circulation or diamond drilling is planned on the projects within the next two years.
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