GTI Resources Ltd (ASX:GTR) will pick up nearly 14,000 acres worth of contiguous ISR uranium exploration claims in Wyoming’s Great Divide Basin.
The claims neighbour mining stalwart Rio Tinto’s uranium properties and will increase GTI’s landholding in the region to around 35,000 acres.
To support its endeavours in the uranium basin, GTI intends to raise A$5 million via a placement.
The new funds will support the acquisition and accelerate the company’s ISR strategy, along with increased drilling activity in the region.
Why the buy?
GTI’s newest buy is colloquially known as the Green Mountain Project. It covers around 13,800 acres and is made up of 627 mostly contiguous mineral lode claims.
Thanks to some historical drilling and oil well data, the company has already identified exploration targets to permit and drill.
Here’s why the claims caught GTI’s eye:
- The company can afford to move between its existing assets and the claims, as well as nearby processing facilities;
- There are several big mining names — and deposits — in the region. Notable mentions include Energy Fuels’ 30-million-pound Sheep Mountain deposit, Ur-Energy’s Lost Soldier ISR deposit, UEC’s Antelope deposit and Rio Tinto’s past-producing Big Eagle deposit, as well as the Jackpot, Desert View, Phase II and Willow Creek assets;
- Wyoming’s Great Divide Basin and Green Mountain region has a rich exploration history. Major US miners like Kerr McGee Uranium, Conoco Minerals, Phillips, World Nuclear and others turned the soil in the 70s and 80s; and
- Historical drill data from Kerr McGee confirms the presence of the Battle Springs formation, which hosts the neighbouring, major uranium deposits.
The fine print
To complete the acquisition, GTI will acquire 100% of Logray Minerals, which holds the mineral claims.
It’ll pay A$750,000 in cash and, subject to shareholder approval, issue the vendors 105 million fully paid GTI shares.
Two-thirds of those consideration shares will be escrowed for 6 months from when due diligence is satisfied.
A$5 million placement
Supporting GTI’s acquisition is a A$5 million capital raise.
The uranium stock will issue 240 million shares at A$0.021 apiece to raise the funds, while subscribers will snap up one free-attaching option for every four shares purchased.
Apart from funding the claims buy, the cash injection will support exploration in the basin and provide general working capital.
Perth stockbroker CPS Capital Group orchestrated the raise.
