Zenith Energy Ltd (LSE:ZEN, TSX-V:ZEE) shares jumped 22% to 3.3p after Italy’s Lombardy region accepted the company’s applications to explore the country’s two largest known uranium deposits, Val Vedello and Novazza.
The move marks the first time exploration permit requests for these sites have progressed to the final environmental approval stage.
The deposits, discovered by Italy’s former national energy group AGIP Nucleare between 1959 and 1982, contain an estimated combined resource of about 7,000 tonnes of uranium oxide.
Both sites include extensive underground mine workings, enabling exploration to advance quickly and at low cost.
Zenith has established a dedicated subsidiary, Futuro Energetico Italiano, to hold and develop the projects, with environmental impact assessments expected to be submitted by January 2026 and permits anticipated mid-year.
The company is evaluating a possible spin-out of the uranium assets to attract institutional funding.
Chief executive Andrea Cattaneo said the projects align with Europe’s renewed focus on energy security and critical raw materials.