Perth-based uranium explorer 92 Energy (ASX: 92E) will raise $8.7 million via a flow-through share placement to fund an aggressive drilling campaign at the recently-discovered Gemini Mineralised Zone (GMZ), within the Gemini project in Canada’s Athabasca Basin.
The company will issue approximately 11.1 million new shares at $0.78 each to institutional, sophisticated and professional investors to progress exploration at the GMZ; conduct additional drilling at the Gemini property; and complete preliminary exploration at the wholly-owned Tower, Clover, Powerlines and Cypress projects in the Athabasca Basin.
The placement was facilitated by Canadian flow-through share dealer and fund manager Peartree Securities Inc.
Canaccord Genuity (Australia) was appointed lead manager to the transaction.
Global uranium demand
92 Energy managing director Siobhan Lancaster said the capital raising would advance Gemini in an environment of surging global uranium demand.
“The fact that uranium is now considered a critical mineral by the Canadian Government and attracts an even larger flow-through premium confirms the importance of uranium and nuclear as an avenue for governments to meet their decarbonisation and energy security goals,” she said.
“Drilling has now commenced at Gemini and we look forward to completing the initial plan of up to 6,000m, with the aim of expanding the GMZ footprint and carrying out other high-priority exploration drilling on this highly-prospective property.”
92 Energy began drilling at the GMZ in February and by April, had hit the highest levels of radioactivity to date at the prospect.
Work focused on areas where strong, thick intervals of continuous mineralisation southwest of a discovery hole returned results of up to 17m averaging 0.38% uranium oxide, including 8m averaging 0.62% uranium oxide.
The best drilling results to come from GMZ include a 22m intersection of continuous elevated radioactivity with a maximum of 15,780 counts per second.
Elevated radioactivity at GMZ has now been defined over a length of 230m in the northwest-southeast direction and 80m in the northeast-southwest direction.