Terra Uranium Limited Secures $320,000 in New Capital for Strategic Projects
TERRA URANIUM LIMITED (T92) Share Update December 2024 Sunday 15th
Terra Uranium Announces $320,000 Capital Raise Through Share Placement
Terra Uranium Limited (ASX:T92) has successfully raised $320,000 through a share placement to fund its exploration projects in the Athabasca Basin and the acquisition of the Amer Lake Uranium Project.
Instant Summary:
- Raised $320,000 through a placement of new shares at $0.045 each.
- Funds to support exploration in the Athabasca Basin and the Amer Lake acquisition.
- 7.1 million new shares issued under Listing Rule 7.1A.
- Each new share comes with a free unquoted option exercisable at $0.09 by 31 December 2026.
- Shareholder approval required for option issuance in February 2025.
Details of the Capital Raise
Terra Uranium Limited has announced a successful capital raise of $320,000 through a placement of new shares. The placement was priced at $0.045 per share, and the funds will be used to advance the company's exploration projects in the Athabasca Basin, Canada, and to partially fund the acquisition of the Amer Lake Uranium Project.
The placement involved the issuance of approximately 7.1 million new shares under the company's existing Listing Rule 7.1A placement capacity. Each new share issued also includes one free unquoted option, exercisable into one new share at a price of $0.09, expiring on 31 December 2026.
Use of Funds
The capital raised will primarily be allocated to several key areas. Firstly, it will support early-stage exploration work at the Spire & Horizon projects, as well as geophysics at HawkRock and Pasfield East. Additionally, funds will be used for the care and maintenance of the Pasfield Lake Base Camp.
Moreover, the company plans to use part of the funds to pay for the proposed acquisition of the Amer Lake Uranium Project, subject to finalizing the acquisition documentation. The remaining funds will be used for general working capital purposes, including covering the costs of the placement.
Management and Timeline
The placement was managed by Peak Asset Management and GBA Capital, who will receive a cash fee of 6% of the gross funds raised. The settlement date for the placement is set for 23 December 2024, with the new shares expected to be quoted on the ASX by 27 December 2024.
The issuance of options will require shareholder approval at a meeting anticipated in early to mid-February 2025.
This capital raise is a strategic move for Terra Uranium, providing necessary funds to advance its exploration projects and secure new acquisitions. The inclusion of options may attract more investors, offering potential future gains if the stock price appreciates. However, the requirement for shareholder approval introduces some uncertainty, which could influence short-term investor sentiment.
Investor Reaction:
Analysts may view the capital raise positively as it strengthens Terra Uranium's financial position to pursue strategic projects. However, the dependency on shareholder approval for the options issuance could lead to cautious optimism among investors.
Conclusion:
Investors should keep an eye on Terra Uranium's progress with its exploration and acquisition projects, as well as the upcoming shareholder meeting for option approvals. These developments could significantly impact the company's future growth and stock performance.