GTR raises $4.5M and secures NASDAQ-listed cornerstone investor
Our US uranium Investment GTI Energy (ASX: GTR) just closed a $4.5M capital raise at 0.35c per share, a ~16.7% premium to its last closing price.
(it’s always nice to see a capital raise closed at a premium, it indicates strong support for the stock from more institutional-based buyers)
Cornerstoning the raise was NASDAQ listed Snow Lake Resources (NASDAQ:LITM).
As part of the deal Snow Lake will take a 9.99% stake in GTR, as well as a board seat.
The Snow Lake investment into GTR is interesting for us for two reasons:
- This is further evidence of US capital starting to flowing into ASX listed mining companies
See our article on US capital flows into the ASX here: How Small Companies Tap Into Larger Capital Markets. - Snow Lake owns 50% of the asset next door to GTR and is a 19.99% shareholder in the company that holds the other 50% (our other Investment Global Uranium and Enrichment).
We think Snow Lake’s interest in this part of the US has a lot to do with the existing processing infrastructure in the region that is available to switch back online IF market signals warrant bringing new uranium supply online.
GTR’s project sits within ~80km of five permitted uranium processing plants…
And only ~16km away from $49BN Cameco’s Smith Ranch-Highland plant (the USA’s biggest ISR uranium production facility).
The US currently has the world’s biggest nuclear reactor fleet (which means demand for uranium).
And yet, the US has virtually no domestic uranium production (for now).
Look how uranium production falls off a cliff in this chart:
(Source)
IF the US is serious about shoring up its domestic supply chains and increasing mineral production inside the US, we think Wyoming will have a role to play when it comes to uranium.
What’s next for GTR?
🔲 Drilling to increase Lo Herma’s resource (H2-2025)
We want to see GTR drill out its Lo Herma project and increase its current JORC resource.
GTR expects drilling to start in H2-2025.
We want to see GTR drilling into the parts of its project where it has already defined an exploration target.
Here is an image showing those areas:
🔄 Corporate administration
We also noticed a few administrative notes in the back of today’s announcements.
GTR said it would look to do a consolidation of its shares with the final ratio and timetable to be “included in the EGM meeting documents expected to be released to shareholders in the next two weeks”.
AND GTR expects to be changing its name - also in the upcoming EGM.
We will also be looking out for the issuance of the placement shares with ~$2.5M to be issued next week (8th July 2025) and the rest of the placement ~$2M after the company’s EGM.
With the placement shares to come online and the consolidation to happen we think there is a chance GTR’s share price trades sideways until all of the administrative work is completed.
Lower trading activity is something we are used to seeing in company’s going through a consolidation.
