GTI Energy capital raise backed by Snow Lake
Australia's GTI Energy has raised A$4.5-million through a placement that will see US-focused uranium company Snow Lake Resources emerge with a 9.9% stake and the right to appoint a director.
The placement, priced at A$0.0035 a share, drew demand from both domestic and international institutional investors, the ASX-listed company said Monday. It will be executed in two tranches, with Tranche 2 subject to shareholder approval at an upcoming extraordinary general meeting (EGM). Snow Lake’s participation in the second tranche remains subject to final due diligence.
Snow Lake, trading on Nasdaq, holds a 50% joint venture in the Pine Ridge project, which abuts GTI’s Lo Herma in Wyoming. The investment marks a strategic alignment between the two uranium projects along trend.
“We are thrilled with the robust backing from our investors, particularly Snow Lake’s strategic investment,” said GTI Energy executive director Bruce Lane. “Snow Lake’s commitment is strategically significant due to the proximity of its 50/50 JV Pine Ridge project, which adjoins Lo Herma along trend.”
“The placement provides us with the financial runway to advance Lo Herma through the next phase of drilling and fieldwork, aimed at expanding and upgrading the project’s resource base,” he added.
Directors of GTI have committed to subscribing for A$60 000 of the funds raised, subject to shareholder approval.
The proceeds will be used to support Lo Herma’s resource expansion and infill drilling programme, as well as hydrogeological and metallurgical studies, landholding costs, general working capital, and offer expenses.
Each placement participant will also receive one listed option for every two shares issued, with a strike price of A$0.01, pending shareholder approval.
GTI will also ask shareholders to approve a share consolidation and a potential change of company name at the EGM. Details on both proposals will be provided in documents expected within the next two weeks.
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