Thunderbird Resources to raise $4.1m for drilling of Athabasca Basin uranium projects
Thunderbird Resources (ASX: THB) will raise $4.1 million through a share placement and entitlement offer to support drilling and exploration programs at its prospective uranium assets in Canada’s world-class Athabasca Basin.
The company will raise approximately $1.35m through the issue of 45 million fully-paid ordinary shares at $0.03 each and a further $2.77m by way of a non-renounceable entitlement offer at the same price on the basis of one new share for every two shares held.
The placement and entitlement offer price represents a discount of 6.25% to Thunderbird’s last closing price of $0.032 on 29 May and a 14.29% discount to the company’s 10-day volume-weighted average price of $0.035.
Drilling program plans
Proceeds from the raising will be used to fund a 2,400-metre drilling program in August at the Hidden Bay project located on the eastern edge of the Athabasca Basin.
Funds will also go towards an airborne geophysics survey at the Surprise Creek project, which sits 25km north-west of Uranium City in northern Saskatchewan and approximately 30km north-west of the Beaverlodge uranium district.
The survey will follow up on historical assays of up to 2.1m at 4.37% uranium oxide.
Hidden Bay comprises five drill-ready targets, while mineralisation at Surprise Creek has been delineated over 500m of strike.
Timing is right
Executive chair George Bauk said the capital raising would help accelerate the company’s targeted exploration efforts at the “right time” in the uranium cycle.
“With the uranium price at US$90 per pound and with an exceptionally strong long-term outlook, we expect this raising will provide us with a strong cash position to test high-priority uranium targets and ensure we can add value for our shareholders,” he said.
“Our field work at Hidden Bay is already underway and the results will help inform an initial drilling program in August to test a suite of exciting basement-type uranium targets.”
Lead manager
CPS Capital Group has been appointed lead manager to the placement.
It will receive a fee equating to 6% of total gross proceeds of the placement, as well as 20 million unlisted options at an exercise price of $0.065 and a 2027 expiry date.
The entitlement offer will be underwritten by RM Corporate Finance.
It will receive a fee equating to 6% of total gross proceeds of the entitlement offer plus 40 million unlisted options at the same exercise price and expiry date as CPS.