Mining

Terra Uranium launches $6m IPO to explore prolific Athabasca Basin

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By Imelda Cotton - 
Terra Uranium IPO ASX T92 Athabasca Basin

Terra Uranium is seeking to raise a minimum of $6 million through its offer of 30 million shares at $0.20 each. The company will trade on the ASX under ticker code ‘T92’.

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The targeting of greenfield discoveries and brownfield developments close to existing production infrastructure will be the order of business for junior explorer Terra Uranium when it plans to list on the Australian Securities Exchange (ASX) later this month.

The company is determined to play a role in a clean carbon-free economy by chasing the uranium potential of Canada’s prolific Athabasca Basin led by a management team based locally in Canada.

Terra was established in mid-2021 with 17 claims forming the 100% wholly-owned HawkRock, Parker Lane and Pasfield Lake projects.

Together, they cover 775 square kilometres on the eastern side of the basin and are approximately 50km to the west of multiple operating uranium mills, mines and known deposits.

Initial public offering

Terra is seeking to raise a minimum $6 million through an initial public offering (IPO) of 30 million shares priced at $0.20 each.

The offer is open to an additional 7.5 million shares at the same price to raise an additional $1.5 million.

Funds will be used for exploration activities to test the viability of the company’s projects over the first two years following its ASX listing in September.

Terra said it will also assess new strategic acquisitions and canvas other resource opportunities with potential to generate growth and value for shareholders further down the track.

Proposed exploration programs will account for total expenditure of $3.8 million at the minimum subscription and $4.3 million at the maximum.

In the event the IPO raises more than $6 million but less than $7.5 million, the additional funds will be proportionally added to HawkRock’s exploration budget, as well as corporate and administration costs and working capital.

Peak Asset Management has been appointed lead manager to the offer.

Terra will trade on the ASX using the ticker code ‘T92’.

Cable Bay Shear Zone

Terra’s primary aim is to discover and delineate its own high-grade, economic deposit with potential to sustain a modern low-impact mining operation.

Its portfolio is focused on the poorly-explored Cable Bay Shear Zone, which is a northeast-oriented area considered to be a major post-Athabasca reactivated basement structural feature.

Terra believes a large uranium deposit at the zone has developed a coherent geochemical halo, which it intends to test using scout drilling and geochemical sampling and airborne geophysics over the next few months followed by deeper target drilling this northern winter.

The methodology has not been previously applied with great success in the basin.

The company has combined existing historical geochemical and geophysical surveys (including electromagnetic, magnetic, resistivity and gravity) to map the host rocks and alteration signatures at all three projects.

Highest-grade developments

The Athabasca Basin hosts some of the world’s largest and highest-grade uranium developments including Cigar Lake, McArthur River, Arrow, Triple R, Millennium and Wheeler River.

There have been no major discoveries deep under cover within the basin since the 1980s.