Infini Resources Secures $3.4 Million to Accelerate Uranium Exploration at Portland Creek
INFINI RESOURCES LIMITED (I88) Share Update August 2024 Thursday 1st
Infini Resources Announces $3.4 Million Strategic Placement for Uranium Exploration
Infini Resources Limited (ASX: I88) has announced a successful $3.4 million capital raise to fast-track exploration activities at its Portland Creek Uranium Project in Canada.
Instant Summary:
- $3.4 million raised to expedite geochemical sampling and maiden diamond drilling.
- Identification of a large-scale fault system and multiple magnetic anomalies.
- Infini Resources' board to participate for $1 million, subject to shareholder approval.
- Issue price of $0.60 per share, a 15.49% discount to the last traded share price.
- Funds to support expanded second phase surface geochemical survey and maiden drilling.
Capital Raise Details
Infini Resources Limited has successfully raised $3.4 million through the issue of 5.67 million ordinary shares at an offer price of $0.60 per share. This strategic placement also includes a 1-for-1 free attaching option exercisable at $1.00 each. The funds will be used to accelerate exploration activities at the Portland Creek Uranium Project in Canada.
The $3.4 million capital raise comprises a $2.4 million investment from sophisticated, professional, and institutional investors, along with $1 million in commitments from Infini's directors, subject to shareholder approval. This strong support from both new and existing shareholders, as well as the board, demonstrates confidence in Infini's vision and growth strategies.
Exploration Plans
The raised funds will be used to build on recent successful programs at Portland Creek, particularly at the highly prospective Talus Uranium Prospect. UAV magnetics have identified a large ~2km long primary fault zone with a network of NE-SW trending splay faults. These faults may control the ~235m x 100m high-grade soil anomaly, which has a peak soil assay result of 74,997 ppm U3O8.
Infini Resources plans to expedite geochemical sampling and commence maiden diamond drilling. The company aims to create substantial value for shareholders by fast-tracking exploration work, which is set to recommence this month.
Placement Details and Timeline
The issue price of $0.60 per share represents a 15.49% discount to the last traded share price of $0.71, a 14.42% discount to the 15-day VWAP, and a 5.67% discount to the 30-day VWAP. The placement will result in the issuance of 4 million new shares and 4 million attaching new options to sophisticated investors under ASX Listing Rule 7.1.
Infini's directors, including Charles Armstrong, Dr. David Pevcic, Robert Martin, and Dr. Andy Wilde, have collectively subscribed for 1.67 million new shares and 1.67 million attaching new options, subject to shareholder approval. The proceeds will support the company's planned uranium exploration programs and general working capital.
The new shares and options are expected to settle on 27 August 2024, with director participation securities expected to settle in late September 2024 following shareholder approval. All new shares issued under the placement will rank equally with existing shares, and the new options will have an exercise price of $1.00 each, expiring three years from the date of issue.
The successful capital raise positions Infini Resources strongly to capitalize on the growing demand for reliable energy. The expedited exploration activities at Portland Creek could lead to significant discoveries, potentially boosting the company's stock value. The strong support from both investors and the board indicates high confidence in the project's prospects.
Investor Reaction:
Analysts are likely to view the capital raise positively, given the strategic focus on a highly prospective uranium project. The participation of Infini's board in the placement further underscores the potential of the Portland Creek Uranium Project. However, investors will closely monitor the outcomes of the upcoming exploration activities.
Conclusion:
Infini Resources' strategic capital raise marks a significant step towards accelerating its exploration activities at the Portland Creek Uranium Project. Investors should keep an eye on the progress of the geochemical sampling and maiden diamond drilling, as successful outcomes could substantially enhance shareholder value.