Okapi has received strong backing from new and existing institutional and sophisticated investors for a placement to fund uranium development in the US and drilling in Canada.

The company received binding commitments for the $2m placement of about 10.5 million new shares priced at 19c each that includes one free attaching option exercisable at 30c and expiring on 19 July 2024 for every two shares subscribed.

Proceeds will be used to progress development of the Tallahassee uranium project in Colorado, which has a resource of 48.9Mlbs of U3O8, and preparatory drilling at the Newham Lake and Perch projects in Canada’s Athabasca Basin.

The placement will be carried out under Okapi Resources’ (ASX:OKR) existing placement capacity with settlement expected on Friday, 4 November 2022.

“We are pleased at the support we received from shareholders and welcome a number of new institutional and sophisticated investors to the company’s register,” managing director Andrew Ferrier said.

“Okapi is uniquely positioned to maximise shareholder value through its substantial portfolio of uranium assets in the United States as the White House proactively aims at reducing reliance on uranium from Russia.

“The administration is currently making significant investments in the United States nuclear sector and it is anticipated that a significant portion of this capital will be deployed into incentivising domestic production of uranium.”

Uranium projects

The Tallahassee project is located in central Colorado about 140km southwest of Denver and 30km northwest of Canon City.

It covers leases over two private properties that provide a 100% interest in about 3000ha that encompass the Boyer, Noah and Northwest Taylor uranium deposits, eight Federal lode mining claims and a State of Colorado lease that cover a portion of the High Park uranium deposit, and the 51% stake in the Hansen uranium deposit.

Newnham Lake consists of 14 dispositions covering a total of 16,940ha which host eight zones of interest, each of which have anomalous results from the interpretation of stacked geological, geophysical and remote sensing layers.

Areas A1, A3, C1, D1 and D2 have been selected by the company as priorities for future work.

Over at the Perch project, compiled historical data combined with recent satellite image analysis indicated a strong east-west structural fabric of intersecting northeast-southwest structures in the exposed, or near surface, Archean Basement rocks that lie north of the Athabasca Basin unconformity contact.

These intersections appear to be coincident with historically identified anomalous geochemistry.




This article was developed in collaboration with Okapi 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.