GTI Energy Raises A$2.25 Million To Advance Lo Herma Uranium Project

GTI Energy Ltd (ASX:GTR) has secured firm commitments for A$2.25 million via a placement of shares to existing and new institutional and sophisticated investors at A$0.0045 per share.

With its coffers full, the company will advance resource drilling targeting a scoping study at its Lo Herma Uranium Project and exploration at its Green Mountain and Utah projects in the US.

Furthermore, GTI intends to offer existing shareholders the opportunity to participate in a non-renounceable pro-rata rights entitlement offer on the same terms as the placement.

Placement summary

As part of the placement, 500 million shares will be issued at A$0.0045 per share with one free attaching option for every three placement shares subscribed for.

The option will have an exercise price of one cent per share and expire four years from the date of issue.

For the rights issue, terms including timing have not been confirmed and are subject to change however the record date for the rights issue is anticipated to be after the issue date for placement shares.

CPS Capital intends to underwrite the non-renounceable pro-rata rights entitlement offer subject to an underwriting agreement.

What’s more, the company also intends to conduct a priority option Issue to existing GTRO option holders with details to follow.

Drilling imminent at Lo Herma

The planned 2024 drilling program at Lo Herma includes 71 drill hole locations and the construction of up to 5 groundwater monitoring wells.

This next phase of exploration will be focused on expanding the resource areas and where possible, upgrading the current mineral resource classification.

GTI intends to mobilise drilling rigs to Lo Herma as soon as the activity is fully permitted, and environmental clearances are finalised.

At this time, GTI continues to anticipate that drilling will commence at Lo Herma in July 2024.

MRE and scoping study to follow

Following the completion of the 2024 drill program at Lo Herma, GTI intends to publish an updated mineral resource estimate and exploration target range for the project.

The company expects that the updated mineral resource estimate will support the near-term development of a scoping study to demonstrate the economic potential of the project

 

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