GTI Resources is now the proud owner of a big chunk of highly prospective ground in the most important uranium province in the US.
And it will be cashed up to boot, with a fully underwritten $1m entitlement offer alongside a placement to raise a further $1m.
GTI (ASX:GTR) revealed today that it had successfully completed the acquisition of Voyager Energy, which holds eight uranium and vanadium exploration projects in Utah.
The projects are located in the Henry Mountains mining district of south eastern Utah – a region that has produced 92 million pounds of uranium and 482 million pounds of vanadium.
The Henry Mountains are located within Garfield County — the fourth largest producer of uranium and vanadium in Utah.
The region forms part of the prolific Colorado Plateau uranium province which has historically provided the most important uranium resources in the US.
GTI has a strategic advantage with the acquisition of Voyager Energy because the projects it holds acquire all host known high-grade uranium and vanadium mineralisation that could potentially be much higher grade than the average 2,400ppm uranium and 1.25 per cent vanadium produced in the region in the past.
Sampling taken from the projects returned high grades of up to 81,558ppm of uranium and 8.39 per cent vanadium.
Energy Fuels’ Tony M mine is located adjacent to GTI’s new projects and Energy Fuels also owns the only operating uranium mill in the US called the White Mesa Mill located within trucking distance of the newly acquired projects
The mill is also producing vanadium to complement the uranium processing operations and is running at a fraction of its available capacity
The mill has in the past accepted toll milling agreements as well as done other deals to process ores from third party mines.
GTI said this could represent a low-cost opportunity for producers in the region to utilise existing infrastructure, eliminating the significant capital requirement of developing a mill.
Cashed up
On top of its lucrative buy, GTI will also be well funded for exploration, with a $1m entitlement offer being fully underwritten by CPS Capital Group.
The company will offer shareholders one fully paid share for every two held at a price of 1c apiece.
The entitlement offer is being done along with a two-tranche placement at the same price to sophisticated investors to raise a further $1m.
GTI plans to sink the new cash into its new projects in Utah and its existing Western Australian projects.
New experience
As part of the acquisition, Bruce Lane has joined GTI as an executive director.
Murray McDonald has transitioned to non-executive chairman and Emma Gilbert has stepped down from the board.
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