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GTI Resources expands Wyoming uranium footprint to 35,000 acres
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Around 13,800 acres of contiguous ISR uranium claims abutting Rio Tinto deposits at Wyoming’s Green Mountain have been acquired by GTI, directly adjacent to GTI’s existing Great Divide Basin (GDB) Projects and close to a number of significant uranium deposits.
The move comes after the company entered into a binding term sheet agreement to acquire 100% of Logray Minerals, holder of the under-explored mineral lodge claims.
GTI (ASX:GTR) now owns a hefty footprint of around 35,000 acres across the Green Mountain/GDB basin, one of several major basins within the Wyoming basin physiographic province known to host economic, sandstone-type roll front hosted uranium deposits.
The Rio Tinto owned Jackpot Deposit contains over 52 million pounds of Uranium, according to former owner of the mine Green Mountain Mining Ventures.
The new properties are within economically viable transportation distance from both existing land holdings and several significant uranium deposits and or processing facilities held by the neighbouring Rio Tinto, Energy Fuels, UEC and Ur-Energy.
The GDB & Green Mountain were extensively explored by drilling in the 1970’s and early 1980’s by major US companies including Kerr McGee Uranium, Conoco Minerals, Phillips, and Wold Nuclear.
A recent review of historical Kerr McGee drill data and other oil well logs has confirmed the presence of uranium mineralised roll fonts with the Battle Springs formation, which hosts the neighbouring uranium discoveries.
Recent drill program success and understanding of the conditions for successful ISR recovery in the GDB positions GTI to capitalise on the burgeoning uranium market.
Key terms of the acquisition
In consideration for the acquisition, GTI will pay A$750,000 reimbursement of costs and, subject to GTI shareholder approval, issue to Logray shareholders consideration of 105,000,000 fully paid ordinary shares.
Completion of the acquisition is subject to several conditions which must be satisfied within 90 days of the date of the agreement, including GTI completing technical, legal and commercial due diligence on Logray & the properties within 30 days.
Capital raising
In parallel to the acquisition, the uranium play is conducting a placement of 240 million shares at an issue price of $0.021 to raise roughly $5 million.
Proceeds will be used to fund the acquisition, as well as carry out exploration activities at the properties, pay costs of the capital raising and for working capital.
CPS is the lead manager and arranger to the placement and will receive a 6% capital raising cash fee for the funds raised in the placement plus 20,000,000 listed GTRO options and, subject to shareholder approval, one listed GTRO option for each ten shares subscribed under the placement.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
