GTR: $5M raised via placement @ 2.1c and new Uranium acquisition

This morning GTR announced that it had completed a placement raising $5M at 2.1c per share whilst at the same confirming that it has acquired another ~13,800 acres in grounds at its Wyoming Uranium project.

GTR now holds ~35,000 acres across the Great Divide Basin which is the capital for uranium production in the US accounting for ~80% of domestic uranium production. The new project area sits on the border of Rio Tinto’s project area and to the south of Energy Fuels’ 30mlb uranium resource.

The acquisition comes after the recent drilling results from GTR’s drilling program at the Thor project discovered a mineralised uranium system. We covered the drilling results in our last note for GTR which can be read here.

With an even bigger project area, GTR now has added even more exploration upside to follow up this drilling program with additional discoveries.

GTR has managed to pick these projects up for a total consideration of $750k in cash and 105 million shares in GTR, two thirds of which will be escrowed for ~6 months.

GTR will be funding the acquisition through the proceeds of the $5M capital raise @ 2.1c per share. The shares came with 1 free option for every 4 placement shares investors purchased, exercisable @ 3c per share with a October 2024 expiry.

With the Uranium price now trading above US$60/lb for the first time in ~11 years, GTR is starting to put together a project with some serious exploration upside strategically located in the US at just the right time.

This is one of the key reasons we continue to hold GTR in our portfolio. To see all of the reasons why we continue hold GTR and what we want to see the company achieve in 2022 check out our 2022 Investment Memo here.