Follow the yellow cake road: GTI to go full-on uranium
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GTI is spinning off its Niagara gold project near Kookynie, Western Australia to focus on its US uranium assets ahead of a supply shortage of the energy metal.
The company will sell Niagara to Regener8 Resources, which plans to list on the ASX during the first half of 2022, under a binding Tenement Sale & Purchase Agreement that will allow it to retain some exposure to the gold project.
Regener8 will pay GTI Resources (ASX:GTR) 5 million of its shares priced at 20c each, 1.5 million performance rights and $150,000, for a total potential value of about $1.45m, on its ASX listing in return for 100% of the project.
Eligible GTI shareholders will also have the opportunity to participate in a $2m priority offer under Regener8’s initial public offering.
“Divestment of GTI’s non-core gold assets is a crucial step forward as we execute our strategy to focus the company’s financial and management resources on key uranium assets in the USA,” chairman Nathan Lude said.
“By divesting these gold assets into Regener8, GTI will be able to focus on our key USA uranium assets while retaining exposure to a company that will be focused on the development of an exciting suite of gold exploration properties in the currently very active Kookynie belt of WA’s eastern goldfields.”
“GTI will retain a material shareholding and board representation in a well-funded entity focused on gold exploration in WA. We believe this is a great opportunity to maximise shareholder value in these highly prospective gold assets.”
The Niagara project is a highly prospective gold play with historical production of 5,100oz Au at a grade of 25.8 g/t between 1898 and 1914.
It consists of nine licences that provide a consolidated holding over 5km of mineralised strike and is overdue to be professionally explored.
Niagara is surrounded by a number of notable deposits including Genesis Minerals’ (ASX:GMD) historical Orion/Sapphire project and Iris Metals’ (ASX:IR1) historical Gladstone mine. Metalicity (ASX:MCT) and Carnavale Resources (ASX:CAV) are also actively exploring just a few kilometres to the north.
The mineralised trends that represent high-priority, advanced exploration targets in the east of the project area are collectively up to 2.5km in length.
This article was developed in collaboration with GTI Resources, 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.