Elevate Uranium raises $10m to ‘aggressively advance’ 48Mlbs Koppies deposit
Special Report: Elevate Uranium is raising $10M to accelerate its Koppies uranium play in Namibia, where recent exploration upgraded the resource a whopping 136% to 48Mlbs.
Elevate Uranium (ASX:EL8) now has +$17M for more resource growth and project studies.
Firm commitments were made by new and existing shareholders to raise $10M at 42c per share representing a 15.5% discount to the 5-day VWAP, adding to EL8’s cash balance of $7.1M.
EL8 says the funds will be allocated to resource in-fill and expansion drilling, metallurgical test work and commencement of a scoping study at the flagship Koppies project.
Three drill rigs are currently spinning to further grow the resource and the explorer plans to expand the current program and test other greenfields targets across its Namibian portfolio by bringing in two more drill rigs.
EL8 will also conduct metallurgical test work at Koppies which will provide the foundation for an U-pgradeTM pilot plant.
Funds will also be used for high impact resource drilling and additional exploration at the company’s Angela and Minerva uranium projects in the NT.
The company will also look into potential opportunistic acquisitions to increase its portfolio.
EL8 MD Murray Hill says demand for the $10M placement was strong and it was “great to see such a tangible endorsement of our strategy”.
“The placement adds further depth to our register, strengthens our financial position and allows us to press on to aggressively advance our flagship Koppies project in Namibia and explore our other projects in Namibia and Australia.
“This provides the funding for us to take Koppies to the next level through continued drilling to upgrade the resource category and commence metallurgical testwork to feed into a study prior to proving our U-pgradeTM process in a pilot plant. While at the same time continuing our resource growth from other discoveries and greenfields exploration, which may well result in additional discoveries to add to the four over the past four years.
“In an increasingly buoyant uranium price environment, we will have five drill rigs operating in Namibia alone.”
A uranium renaissance is underway, as the world’s clean energy transition cries out for consistent baseload energy sources such as low-emission nuclear power to meet electricity demands.
160Mlb of uranium has already been contracted by utilities in 2023, the highest amount since Fukushima. Higher contracting and higher prices have historically moved hand in hand.
“The long-term market for uranium between producers and utilities has resumed in earnest. It’s a very exciting time to be in the market,” said 92 Energy (ASX: 92E) managing director Siobhan Lancaster said a recent conference.
“I think next year is going to be in uranium’s year and everyone’s going to get behind the equities.”
One of the ASX’s most advanced explorers is EL8.
Last month, EL8 revealed a huge 136% increase to the flagship Koppies resource to 48Mlbs, boosting the explorer’s Namibian resources to 94Mlb U3O8, with 142Mlb across its portfolio globally.
With 95% of resources just 15m from surface, Koppies comes with a low strip ratio, making it easier and cheaper to mine.
This article was developed in collaboration with Elevate Uranium, 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.