Core Energy begins uranium exploration as it adds $3.7m to the bank

Core Energy has raised $3.7m through a two-tranche placement
The company has also welcomed Jose Luis Manzano as a substantial shareholder
On ground exploration is set to begin in the current quarter

Special Report: Uranium explorer Core Energy Minerals is now in a strong position to embark on exploration work in South Australia and Brazil following strong demand for a two-tranche placement to raise $3.7m.

The placement follows the recent announcement of staged option agreements to acquire an interest of up to 100% in two highly prospective uranium projects covering a combined area of over 2,300km² in the Tier 1 uranium exploration and mining jurisdiction of South Australia.

On-ground exploration including, mapping, confirmatory drilling and geophysical surveys at the Cummins project is planned to commence in the first quarter of 2025, with drilling proposed to commence immediately following receipt of statutory approvals.

Led by Latin Resources alumni Executive Director Anthony Greenaway and Chair Chris Gale, Core Energy Minerals (ASX:CR3) is eager to get boots on the ground and test the advanced drill ready targets at Cummins.

Collectively, they were key figures in the growth of Latin Resources, a Brazilian lithium upstart that captured a major win for investors with its $560m sale this month to Pilbara Minerals (ASX:PLS).

Cummins was acquired by Core Energy along with the Harris Greenstone project earlier this year.

Both assets are in South Australia, Australia’s most supportive uranium mining jurisdiction, hosting multiple world-class uranium projects such as Olympic Dam, Honeymoon and Beverley.

Institutional backing

The capital raising will be undertaken as a two-tranche placement for up to 194.7 million shares to institutional, professional and sophisticated investors at the issue price of $0.019 per share to raise $3.7m.

The issue price is a 10% discount to the last price of $0.021 and a 10% discount to the 15-Day VWAP of $0.021 up to close of trading on Wednesday, January 22, 2025.

Subject to shareholder approval, all the directors of the company have committed to invest a total $220,000 via the second tranche of the placement.

The first tranche includes an unconditional placement of up to 67.7m shares with more than 25m shares under the company’s existing ASX Listing Rule 7.1 placement capacity, 17.1m shares under the 7.1A capacity and 25,000,000 shares which were pre-approved capital sought or received at the annual general meeting held in late November 2024.

CR3 has also welcomed Jose Luis Manzano as a substantial shareholder with a $1.15 million investment in the placement.

Manzano is Founder and President of Integra Capital, an international investment firm, and a strong supporter of several of Core Energy’s Board of Directors in successful prior ventures.

“We are extremely pleased with the strong demand we received from new and existing sophisticated investors,” CR3 Chairman Chris Gale said.

“We are excited to get on the ground and start drilling at the Cummins Project in South Australia and undertake further works to generate drill targets at our uranium portfolio in Brazil and Namibia.”

This article was developed in collaboration with Core Energy Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.