PERTH (miningweekly.com) – ASX-listed Alligator Energy will raise A$25.5-million in a share placement to institutional and sophisticated investors to fund work at its Samphire uranium project, in South Australia.

The company on Wednesday said it had received firm commitments for the placement of 491-million shares, at a price of 5.2c each, with one free attaching option to be issued for every two new shares, exercisable at 7.8c a share and with a two-year expiry date.

The shares will be issued under Alligator’s existing placement capacity, and will not require shareholder approval.

The issue of the options, however, is subject to shareholder approval at a meeting currently scheduled for November 24.

In addition to the share placement, Alligator will also undertake a share purchase plan (SPP), aimed at raising a further A$3-million, and also priced at 5.2c each. The SPP will open on September 26 and close on October 17.

“Alligator Energy is very pleased to be able to raise these funds to enable completion of important future steps towards production at the Samphire uranium project, beyond the planned field recovery trial (FRT) early next year,” said CEO Greg Hall.

“Based on successful results from the FRT, the funds will be targeted through 2024 towards significant Samphire uranium resource growth, feasibility study, mining lease application for approval of the initial economic project, and initial supportively priced and structured uranium offtake agreements.

“The company also sees significant uranium discovery opportunity in its early stage Nabarlek North project in the Alligator Rivers uranium province, with first-priority targets now identified. Along with this, the Big Lake uranium project contains the same sedimentary layers which host the Beverley, Four Mile and Honeymoon ISR deposits in an area which has had very little uranium exploration, and with an exploration model based around the world’s largest ISR fields,” said Hall.

“With our experienced exploration team, the company will continue a suitable risk-based value approach to these projects targeting discovery of new uranium resource projects of economic size. Alligator has undertaken an ongoing review of additional right-size project opportunities in uranium or energy minerals, particularly around the skill sets of our experienced ISR team and will continue to pursue these.”