- Zinc explorer Superior Lake Resources (SUP) has frozen its shares until next week as it finalises the details of an upcoming capital raising plan
- This will be second capital raise taken on by Superior Lake within the last two months, with the company raising $600,000 through a share placement in June
- The company is in the process of taking on some due diligence of several uranium projects in the United States
- A such, while the details of the capital raise are yet to be revealed, the extra funds could go towards a uranium project acquisition over the next few months
- Superior Lake shares are slated to be released from their trading halt on Monday, August 3
- Shares in Superior Lake last traded for 12 cents each yesterday afternoon
Zinc explorer Superior Lake Resources (SUP) has frozen its shares until next week as it finalises the details of an upcoming capital raising plan.
The company has requested back-to-back trading halts in accordance with the new COVID-19 ASX rules introduced in late March, meaning shares are slated to be released on Monday, August 3.
This will be the second capital raise taken on by Superior Lake within the past two months after the company raised $600,000 in early June.
While the details of the upcoming raise are yet to be released, it’s likely Superior Lake could be raising the cash to expand into the uranium sector in the United States.
Throughout the month of June, Superior Lake signed exclusivity agreements with Premier Uranium and Aurora Uranium to conduct due diligence over multiple uranium projects in the States. Depending on the outcome of this due diligence, Superior Lake may then be given the right to purchase the projects from their respective owners.
The due diligence period lasts for three months, meaning a decision to purchase could be made as early as mid-September. Should this be the case, Superior Lake will need some extra cash in the bank to make the buys.
The company’s June quarter financial position is yet to be released to the market but at the end of March, Superior Lake had just $245,000 left to play with. What’s more, with $461,000 in operating expenses over the March quarter, the company had to drastically reduce spending just to make it through to the end of the 2020 financial year.
Of course, the $600,000 top-up in June gives the company a bit more breathing room, but some more funds will certainly be required if a potential uranium project buy is on the way.
Shares in Superior Lake last traded for 12 cents each yesterday afternoon. The company has a $16.44 million market cap.