Uranium junior Alligator Energy launches $23m placement
ASX-listed Alligator Energy launched a $23 million capital raising on Monday morning with its broker Bell Potter in tow.
Uranium prices hit 12-year high in mid-September amid fears of a supply crunch from a coup in Niger, and a decision by Canadian miner Cameco to curtail production. Glenn Campbell
It comes after the uranium junior had its broker Bell Potter arranging investor meetings last week to talk up its prospects, as reported by Street Talk.
The offer was structured as a placement to raise $20 million and a share purchase plan to raise another $3 million. Shares were priced at 5.2¢ per share – a 23.5 per cent discount to the last close price of 6.8¢ and a 17.3 power cent discount to the 5-day VWAP.
Alligator has a nearly $220 million market capitalisation and was down to $18.5 million cash at June 30.
Potential investors were told the proceeds would be used to fund a feasibility study, mining lease application and as an ongoing resource for Alligator’s Samphire Project in South Australia.
Uranium spot has been surging recently, touching on $65 on Friday night. The bellwether uranium equity ETF, URA, has similarly been flying.
Final bids were due by 4 pm on Monday for local investors.
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