- Alligator Energy (AGE) receives commitments to raise $11 million to accelerate its work programs in the Northern Territory and South Australia
- Through a share placement to a small number of institutional investors, 176 million shares will be issued at 6 cents each
- Additionally a one for 10 loyalty option will be offered to eligible shareholders on the record date or around October 25, priced at 4.5 cents
- CEO Greg Hall said while shareholders may be surprised at the decision to raise additional funds this year, AGE is focusing on long-term uranium contracts
- Shares are trading down 4.41 per cent at 6.5 cents each at 11:27 am AEDT
Alligator Energy (AGE) has received commitments to raise $11 million to accelerate its work programs in the Northern Territory and South Australia.
Through a share placement to a small number of institutional investors, 176 million shares will be issued at 6 cents with three attaching premium priced options per four shares.
The issue price is an eight per cent discount to the last closing price and a 9.3 per cent discount to the 30 day trading volume-weighted-average price.
Additionally a one for ten loyalty option will be offered to eligible shareholders on the record date or around October 25, priced at 4.5 cents.
CEO Greg Hall said while shareholders may be surprised of the decision to raise additional funds this year, the change in the spot price for uranium has turned the company’s attention to long-term uranium contracts by nuclear utility buyers.
The company said the loyalty option issue is in recognition of the continuing support received from its shareholder base, which Greg Hall said creates an opportunity to accelerate work on a number of valuable project activities.
Alligator is reportedly working with its legal and advisory teams to make the option available to as many shareholders as possible and practical, based on jurisdictional requirements outside of Australia and New Zealand.
Around $5 million of the funds raised will go towards studies and approvals needed for AGE’s Samphire Uranium project in South Australia.
Ahead of drilling at the project, the company added to its geology team, with Indigenous work area clearance in place as well as a drilling crew. However, departmental approval is pending but reportedly imminent.
Moreover, $2.9 million from the planned raise will be used to grow the Nabarlek North Project drilling scheduled for next year.
The company said it was hoping to complete an initial U40 extension IP survey prior to the wet season access restrictions. However availability of geophysics crew and Covid border closures pose an issue.
The funds will also assist strategic partner opportunities with Traxys and other working capital requirements.
Shares were trading down 4.41 per cent at 6.5 cents each at 11:27 am AEDT.