Alligator Energy to raise $1.75M to fund uranium drilling
Alligator Energy (ASX:AGE) has received firm commitments for a placement of $1.75 million to institutional and high net worth investors.
According to AGE, demand was high and the offer was oversubscribed.
Capital raised from the placement will be used to fund AGE’s proposed drilling program at the TCC4 uranium prospect in the Northern Territory.
AGE is an ASX-listed explorer centred on uranium and energy-related minerals — primarily cobalt-nickel. The company is focused on the discovery of large economic high-grade energy-related metal deposits (uranium, nickel, cobalt) with clear pathways for approval and development.
With mounting uranium interest and favourable sentiment building around uranium equities, and given the current dry season, now is a good time for AGE to initiate drilling of its primary uranium target.
Funds of up to $1.5 million will be allocated to restart exploration work and undertake drilling at the TCC4 prospect. AGE will also allocate funds to advance other promising uranium targets on its tenements within Arnhem Land.
It’s worth noting that this is an early stage play and investors should seek professional financial advice if considering this company for their portfolio.
After several years of work, the TCC4 prospect in the ARUP contains the best quality uranium target outlined by AGE’s proprietary pathfinder and modified SAM undercover exploration techniques. AGE said it believes that this prospect represents the best complete undercover target, with close similarities to the major uranium deposits of the ARUP.
A significant combined track and helisupported drilling program is required to test the concept, and a 2,400 to 3,000 metre drilling program is planned.
AGE this week reopened the Myra drilling camp in Arnhem Land, and will be commencing track opening works.
Alligator’s acting CEO, Greg Hall, said: “The company’s view is that this placement opportunity represents immediate value in on-ground drilling work this year on our primary target in the Alligator Rivers Uranium Province (ARUP), rather than next year under a potential strategic partner arrangement.”
“Alligator has advanced the TCC4 prospect to a drill-ready stage, with several years of undercover pathfinder work to determine the most likely locations for mineralisation beneath the sandstone cover.”
“We have already commenced dry season access work in ARUP and have a field team established at Myra Camp, planned as part of access and asset maintenance under Traditional Owner (TO) agreements. Initial logistical preparations have commenced and the appropriate compliance documents have been lodged with the relevant stakeholders,” added Hall.