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![GTI Energy](https://investingnews.com/media-library/gti-energy.png?id=52373651&width=1200&height=800)
Entitlement Issue Prospectus
This Prospectus contains the following offers:
(a) a pro-rata non-renounceable entitlement issue of one (1) New Share for every five (5) existing Shares held by those Shareholders registered at the Record Date at an issue price of $0.0045 per New Share to raise up to $2,294,952.38 (before costs), together with one (1) free attaching listed New Option for every three (3) New Shares subscribed for and issued (Entitlement Issue Offer);
(b) an offer of 166,666,667 New Options to eligible sophisticated and institutional investors who participated in the Placement announced on 19 June 2024 (Placement), representing one (1) free attaching New Option for every three (3) Shares placed under the Placement (Placement Options Offer) with the issue of the Placement Options remaining subject to shareholder approval;
(c) an offer of one (1) New Option for every four (4) listed GTRO Options owned on the record date at an issue price of $0.0005 per New Option to raise up to $57,798.39 (Priority Option Offer), with the issue of New Options under the Priority Option Issue subject to shareholder approval;
(d) one (1) New Option for every three (3) Shares placed in the Placement and Entitlement Issue Offer to the Lead Manager (and or its nominee/s) issued at $0.000001 per New Option (Broker Offer), with the issue of the New Options under the Broker Offer subject to shareholder approval; and
(e) 40,000,000 New Options to the Lead Manager (and or their nominee/s) issued at $0.000001 per New Option (Lead Manager Offer), with the issue of the New Options under the Lead Manager Offer subject to shareholder approval.
The Entitlement Issue Offer and the Priority Option Offer are partially underwritten to $1,600,000 by CPS Capital Group Pty Ltd (ABN 73 088 055 636) (AFSL: 294848). Refer to Section 5.4 for details regarding the terms of the Underwriting Agreement.
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GTI Energy
Overview
Wyoming has the largest uranium reserves of all the US states and is the home of in-situ recovery (ISR) uranium mining, with experimental ISR mining during the early 1960s and commercial ISR mining starting in 1974. The state is an energy powerhouse in the US, second only to Texas in energy production and accounting for more than 80 percent of the country’s uranium production. It has a production history that dates back to the late 1940s. With a soaring uranium price that passed $90 by the end of 2023, many analysts believe the price will remain on the higher end for years to come.
GTI Energy (ASX:GTR,OTCQB:GTRIF) is a mineral exploration company focused on developing a portfolio of attractive uranium projects in the United States. The company now boasts approximately 42,000 acres in the prolific Great Divide and Powder River Basins, which are low-cost ISR uranium-producing districts within 100 miles of each other.In 2022, the company completed an additional 103 mud rotary exploration drill holes to increase the total trend length for GTI’s projects in the Great Divide Basin to 7.5 miles.
The company has also commenced work at its Green Mountain ISR uranium project next to Rio Tinto’s (ASX:RIO) uranium deposits. GTI has historical drill data confirming the presence of uranium mineralised roll fronts on the properties.
The company is led by a highly experienced management and exploration team with an extensive track record in the mineral exploration industry. GTI’s operational team has proven development and engineering expertise with a history of success in ISR uranium deposit discovery in Wyoming.
GTI’s acquisition of Branka Minerals in November 2021 gave the company control of the largest non-US or Canadian-owned uranium exploration landholding in the Great Divide Basin, with approximately 19,500 acres. The landholding included underexplored and highly prospective sandstone-hosted uranium properties which are the company’s Wyoming projects today. This holding then grew with the purchase of the 13,800-acre Green Mountain project in 2022.
The company further expanded its ISR uranium portfolio in 2023 by acquiring the Lo Herma Project in Wyoming’s prolific Powder River Basin uranium district. The newly staked 13,300 acres of claims are located within 16 kilometers of Cameco’s Smith Ranch-Highland ISR uranium production plant – the largest production site in Wyoming
GTI Energy leverages the strategic positioning of its Wyoming projects, which are located near Ur Energy’s (TSX:URE,NYSE:URG) Lost Creek ISR production plant and the now-rehabilitated historic Rio Tinto Kennecott Sweetwater Mill. The Lost Creek plant is claimed by Ur Energy to be the lowest-cost ISR uranium production plant outside of Kazakhstan.
GTI is committed to strong environmental, social and governance (ESG) initiatives to support the clean energy transition. In November 2021, the company adopted an internationally recognized Environmental, Social and Governance Stakeholder Capitalism Metrics framework, with 21 core metrics and disclosures.
In December 2021, GTI Energy announced it would be transitioning to carbon-neutral operations. The company has subsequently received its carbon neutral certification for its Australian head office and US field operations, through the Australian Government’s Climate Active Program.
GTI Energy is positioned for growth with the pursuit of ISR mining on its Wyoming projects, presenting an opportunity for low operating expenses and capital expenditures with low environmental impact compared to conventional mining. ISR mining supports the company’s goal of low-impact mining and carbon neutrality on its Wyoming projects.
In 2021, the company completed field exploration on its Henry Mountains project in Utah. In the same year, GTI Energy also began a 15,000-meter drill program on its Wyoming projects, concluding the program in early 2022. The drilling confirmed that the targeted ISR-amenable uranium mineralization was present at the Thor project. In 2022, the company completed an additional 103 mud rotary exploration drill holes to increase the total trend length for GTI’s projects in the Basin to 7.5 miles.
Company Highlights
- GTI Energy owns multiple promising assets in Wyoming’s prolific and in-situ recovery (ISR) uranium-producing Great Divide and Powder River Basins. Wyoming is the leading US uranium production state and is “uranium-friendly”.
- GTI’s flagship Lo Herma project comprises 13,300 acres of ground in Wyoming within circa 16 kilometers of Cameco’s $16-billion ISR uranium plant (the largest permitted ISR production facility in Wyoming) and 80 kilometers of five permitted ISR uranium production facilities, including UEC’s Christensen Ranch (due to restart in August 2024) and Peninsula Energy’s (ASX:PEN) Lance Project (due to recommence production in late 2024).
- GTI’s Great Divide Basin projects are strategically located near Ur Energy’s (TSX:URE,NYSE:URG) Lost Creek ISR production plant which has re-commenced production.
- Maiden uranium resource and updated exploration target at the Lo Herma ISR project delivered an inferred mineral resource estimate of 5.71 Mlbs uranium oxide at an average 630 ppm plus an exploration target of an additional 5.87 to 10.26 Mlbs potential at average grade of 500 to 700 ppm.
- Updated total resources across its Wyoming projects of 7.37 Mlbs plus an exploration target of an additional 11.97 to 19.79 Mlbs potential at average grade of 500 – 700 ppm.
- In early 2022, the company completed a further 103 mud rotary exploration drill holes to increase the total trend length for GTI’s projects in the Great Divide Basin to 7.5 miles.
- In late 2023, GTI completed 26 holes at Lo Herma to verify the historical data base & confirm exploration potential along trend & at depth.
- GTI acquired a 1,771 drill hole data set over Lo Herma with a replacement value of AU$15 million.
- GTI received its carbon neutral certification for its Australian head office and US field operations, through the Australian Government’s Climate Active Program.
- GTI aims to utilize ISR mining at its Wyoming projects, which offers lower environmental impact, lower opex and capex than conventional mining.
- GTI Energy has a highly experienced exploration team including the recent appointment of ISR specialist, Matt Hartmann, with a history of successful uranium discovery in Wyoming.
Key Projects
Wyoming Projects
The Wyoming projects are located in the Powder River & Great Divide Basins in Wyoming and the Henry Mountains (Colorado Plateau) Utah, United States. The Greta Divide Basin projects consist of the Thor, Logray, Loki, Odin, Teebo, Wicket and Green Mountain claims. The approximately 13,000 hectare group of projects is prospective for ISR-amenable sandstone-hosted roll-front uranium. The Wyoming projects are situated 5 to 30 kilometers from Ur-Energy’s Lost Creek ISR plant. The projects are also located near Rio Tinto’s Sweetwater/Kennecott Mill.
GTI Energy’s land holding in the Great Divide Basin was bolstered by the acquisition of the Green Mountain project comprising 5,585 hectares of contiguous ISR uranium exploration claims which abuts the Rio Tinto claims at Green Mountain. Historical drill data and geophysics confirms the presence of major uranium mineralisation at the projects.
Initial drilling at Lo Herma commenced in November 2023 and was completed in December with 26 drill holes successfully verifying the historical Lo Herma drill hole database. A drilling permit amendment is currently in progress aiming to optimise follow-up drilling, increase the total number of drill holes, and construct monitoring wells for groundwater data collection. Drilling is expected to resume by July 2024 with an enlarged program, and the mineral resource estimate and exploration targets are expected to be updated in the fourth quarter of 2024.
The company began initial exploration on Thor in 2021, and in 2022, it completed an additional 103 mud rotary exploration drill holes. The drilling of 70 holes was previously reported at the Thor prospect and an additional 33 holes combined have now been completed at the Odin, Teebo and Loki prospects. These 33 holes have discovered an additional combined 4.26 kilometers of ISR amenable uranium mineralised roll front trends increasing the total trend length for GTI’s projects in the Basin to 12.07 kilometers.
In February 2023, GTI Energy secured, by staking, approximately 3,500 hectares of unpatented mineral lode claims known as the Lo Herma project, about 16 kilometers from Cameco’s Smith Ranch-Highland ISR Uranium facility and Energy Fuels Nichols Ranch ISR plant. Lo Herma also lies within 97 kilometers of the companies leading the restart of uranium production in the USA, including Uranium Energy, Ur-Energy, Energy Fuels, Encore Energy and Peninsula Energy.
The company subsequently, secured a material historical data package for the project, which allowed GTI Energy to report a maiden uranium resource and exploration target update at the Lo Herma ISR project, including a cut-off grade of 200 parts per million (ppm) uranium oxide and a minimum grade thickness (GT) of 0.2 per mineralised horizon as 4.12 million tonnes of mineralisation at an average grade of 630 ppm uranium oxide for 5.71 million pounds (Mlbs) of uranium oxide contained metal. The inferred mineral resource estimate is 5.71 Mlbs uranium oxide at an average of 630 ppm.
The company also completed collection of aerial geophysical data at its Lo Herma, Green Mountain and Loki West ISR uranium exploration projects in Wyoming. The survey was conducted using a twin-engine aircraft loaded with a suite of sensors that provide detailed radiometric, magnetic and electromagnetic data, allowing for correlation between the three products.
The airborne geophysical survey at its Green Mountain project consequently updated its drill plan with 16 potential drill holes. The permit application process is underway for the 2024 drill program which aims to test the validity of the historical Kerr McGee drill hole maps, as well as the interpreted mineralised regions as determined from the airborne geophysical survey.
Henry Mountains Uranium Project
GTI’s uranium/vanadium projects in Utah are considered suitable for conventional mining and are located on the east flank of the Henry Mountains, covering 3,860 acres. The permits host historical production, open underground workings and have an exploration permit in place. The projects saw significant work from 2019 to 2021 including two drill programs totaling 52 drill holes and geophysical logging of an additional 76 historical drill holes. GTI subsequently elected to prioritise work at its newly acquired Wyoming ISR projects until such time as activity and investment in the region improves. The company’s projects lie within ~100 miles of Energy Fuels’ (NYSE American: UUUU) (TSX: EFR) White Mesa Mill and within a few miles of Anfield Energy’s (TSX.V: AEC) Shootaring (Ticaboo) mill site. The owners of both of these mills are actively pursuing mill re-starts.
In addition, Western Uranium & Vanadium (CSE:WUC) (OTCQX:WSTRF) has announced the purchase of a mill site in Green River Utah and work to design and permit the facility for processing uranium and vanadium. The plant, which will be located ~80 miles from GTI’s projects, is intended to process feed from Western's recently restarted Sunday Mine Complex over 160 miles away. Western advised of a mine operations restart at Sunday in February 2024. Western stated its new "mineral processing plant" will recover uranium, vanadium and cobalt from ore from Western's mines and that produced by other miners. Western said, on February 13, 2024, it expects the plant to be licensed and constructed for annual production of 1 million pounds U3O8 and 6 million pounds of V2O5, with initial production in 2025.
Based on the renewed interest in exploration, mining, and processing of uranium ore in this region, GTI is currently evaluating potential paths for further exploration, resource development, or other value creating activities with its Utah projects.
Management Team
Nathan Lude - Non-executive Chairman
Nathan Lude has broad experience working in the asset and fund management, mining, and energy industries. Lude is the founding director of Advantage Management, a corporate advisory firm. Lude has previously held directorships with ASX-listed mining companies.
Currently, he is the executive director of ASX-listed Hartshead Resources (ASX:ANA). Lude has grown a large business network across Australia and Asia, establishing strong ties with Australian broking firms, institutions, and Asian investors.
Bruce Lane - Executive Director
Bruce Lane has significant experience with ASX-listed and large industrial companies. Lane has held management positions in many global blue-chip companies as well as resource companies and startups in New Zealand, Europe and Australia. He holds a master’s degree from London Business School and is a graduate member of the Australian Institute of Company Directors. Lane has led a number of successful acquisitions, fund raising and exploration programs of uranium and other minerals projects during the last 15 years most notably with ASX listed companies Atom Energy Ltd & Stonehenge Metals Ltd & Fenix Resources Ltd (FEX).
James (Jim) Baughman - Executive Director
James Baughman is a highly experienced Wyoming uranium geologist and corporate executive who will help guide the company’s technical and commercial activities in the US. Baughman is the former president and CEO of High Plains Uranium (sold for US$55 million in 2006 to Uranium One) and Cyclone Uranium.
Baughman has more than 30 years of experience advancing minerals projects from grassroots to advanced stage. He has held senior positions (i.e., chief geologist, chairman, president, acting CFO, COO) in private and publicly traded mining & mineral exploration companies during his 30-year career.
He is a registered member of the Society of Mining, Metallurgy, Exploration and a member of the Society of Economic Geologists with a BSc in geology (1983 University of Wyoming) and is a registered professional geologist (P. Geo State of Wyoming). Baughman is a registered member of the Society of Mining, Metallurgy, and Exploration (SME) and a qualified person (QP) on the Toronto Stock Exchange (TSX) and Australian Stock Exchange (ASX).
Petar Tomasevic - Non-executive Director
Petar Tomasevic is the managing director of Vert Capital, a financial services company specializing in mineral acquisition and asset implementation. He has worked with several ASX-listed companies in marketing and investor relations roles. Tomasevic is fluent in five languages. He is currently appointed as a French and Balkans language specialist to assist in project evaluation for ASX-listed junior explorers. Most recently, he was a director at Fenix Resources (ASX:FEX), which is now moving into the production phase. He was involved in the company’s restructuring when it was known as Emergent Resources. Tomasevic was also involved in the company’s Iron Ridge asset acquisition, the RTO financing, and the development phase of Fenix’s Iron Ridge project.
Simon Williamson - Non-executive Director
Simon Williamson was general manager and director of Cameco Australia until late 2023 and has significant uranium industry experience, networks and skills from his 13 years at Cameco. During his tenure with Cameco, Williamson managed relations with key government ministers and departments and community stakeholders. He managed project approvals processes, including negotiations with State and Federal agencies and reviewing the PFS for the Yeelirrie project.
Williamson was intimately involved in obtaining environmental approval for the Kintyre and Yeelirrie uranium projects, including developing and implementing a program of environmental baseline studies, government and community consultation and negotiating land access. Prior to his appointment as general manager, he led the government and regulatory affairs, environmental and radiation safety activities of Cameco in Australia. He also held roles with minerals industry participants in Australia and the US including various positions at Cliffs, Sons of Gwalia the WA Chamber of Minerals & Energy and WMC where he negotiated the mine closure criteria for a gold project near Sacramento, California.
Matt Hartmann - Director
ISR uranium specialist Matt Hartmann is an executive and technical leader with more than 20 years of international experience and substantial uranium exploration and project development experience. He first entered the uranium mining space in 2005 and followed a career path that has included senior technical roles with Strathmore Minerals and Uranium Resources. He is also a former principal consultant at SRK Consulting where he provided advisory services to explorers, producers and prospective uranium investors. Hartmann’s ISR uranium experience has brought him through the entire cycle of the business, from exploration, project studies and development, to production and well field reclamation. He has provided technical and managerial expertise to a large number of uranium ISR projects across the US including, Smith Ranch – Highland ISR Uranium Mine (Cameco), Rosita ISR Uranium Central Processing Plant and Wellfield (currently held by enCore Energy), the Churchrock ISR Uranium project (currently held by Laramide Resources), and the Dewey-Burdock ISR Uranium project (currently held by enCore Energy).
Matthew Foy - Company Secretary
Matthew Foy is an active member of the WA State Governance Council of the Governance Institute Australia. Foy has more than 14 years of experience in facilitating ASX-listing rule compliance. His core competencies are in the secretarial, operational, and governance disciplines for publicly listed companies. Foy has a working knowledge of the Australian Securities and Investments Commission and Australia Stock Exchange reporting. He has document drafting skills that provide the basis for valuable contributions to the boards on which he serves.
Rigs Secured For Wyoming Uranium Drilling & Utah Fieldwork Completed
GTI Resources Ltd (GTI or Company) is pleased to advise that 2 mud rotary drill rigs have been secured for its planned drilling campaign at the Thor ISR uranium project in Wyoming’s Great Divide basin (Figure 1). As previously advised, GTI is on track to commence drilling during December. This maiden drill program is designed to confirm the grade and tenor of uranium mineralisation that was previously identified by Kerr McGee in the 1970’s & 80’s and to ultimately support definition of an economic uranium resource.
Figure 1. Thor Project Uranium Drilling Location Map, Great Divide Basin, Wyoming USA
Henry Mountains Utah Uranium & Vanadium Projects
GTI also completed a field reconnaissance exploration program at its Henry Mountains project. The program aimed to enhance GTI’s understanding of uranium & vanadium mineralisation within Section 2 at the southwestern end of the 5.5km mineralised strike including Section 36 between the Jeffery & Rats Nest areas (Figure 2). The data collected will help guide any further exploration drilling at the project area.
Read the full article here.
Rights Entitlement Offers Underwritten to $1.6M
Shareholders will also be invited to apply for additional New Shares under the Shortfall Offer which will be allocated at the Company’s discretion in conjunction with the Lead Manager.
In addition, existing GTRO option holders will be offered one (1) New Option for every four (4) GTRO Options, owned on the relevant record date, at an issue price of $0.0005 per New Option to raise up to $57,798.39 (Priority Option Offer), with the issue of New Options under the Priority Option Offer subject to shareholder approval (the Entitlements Issue Offer and Priority Option Offer are together the Entitlement Offers).
Further details with respect to the Entitlement Offers are set out in a prospectus which has been lodged with ASIC and ASX today (Prospectus). The Prospectus also contains additional offers for options that are free attaching to placement shares (the placement having been announced on 19 June 2024) and options to be issued to CPS Capital Group Pty Ltd (CPS) which has acted as lead manager to the Entitlement Offers and Placement.
CPS has also agreed to partially underwrite the Entitlement Offers to $1,600,000. Pursuant to the underwriting agreement, the Company has agreed to pay CPS a fee of 6% on the amount raised under the Entitlement Issue Offers (plus GST) and the Company will also issue to CPS, or its nominee up to 336,663,139 New Options, being one (1) New Option for every three (3) Shares taken-up and/or placed in the Placement and Entitlement Issue Offer subject to Shareholder approval (Broker Options).
CPS or its nominee/s will also receive a 6% fee and 40,000,000 New Options for managing and placing the Placement securities (Lead Manager Options). CPS will receive a monthly corporate advisory fee of AUD$8,000.00 plus GST, per month, plus a one-off completion fee of $20,000, plus GST, upon completion of the Placement and Entitlement Offers. The Lead Manager and Broker Options will be issued subject to shareholder approval.
Click here for the full ASX Release
Quarterly Cashflow Report for the Quarter Ending 30 June 2024
AuKing Mining Limited (ASX: AKN) has released its Quarterly Cash Flow Report.
Click here for the full ASX Release
This article includes content from AuKing Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Quarterly Report for the Quarter Ending 30 June 2024
AuKing Mining is an exploration company focused on critical minerals, uranium, copper and zinc projects in Canada, Australia and Tanzania
Highlights
- Entered option to purchase Myoff Creek niobium/REE project in British Columbia, Canada (post 30 June 2024).
- Finalised all regulatory approvals for prior to commencement of drilling program at Mkuju uranium project in southern Tanzania.
- Continued liaison with officials in the Tanzanian Ministry of Mines in relation to the revoked Manyoni prospecting licences.
- Preparation of drilling program at Sandiego North at the Koongie Park copper/zinc project – pending access to an available drilling rig.
- Board and management changes – Mr Kabunga and Mr Wei retiring and Mr Williams appointed managing director.
- Successful completion of capital raising and short-term loan facilities during the Quarter.
Ownership – Option to purchase 100% | British Columbia, Canada
Niobium and REE project
On 22 July 2024, AuKing announced that it had entered into an option agreement for the proposed acquisition of a 100% interest in the Myoff Creek project which comprises eight mineral claims in south-eastern British Columbia. Highlights of the project include the following:
- Carbonatite Mineralisation: Near-surface carbonatite mineralisation spans an extensive area of 1.4 km by 0.4 km, based on historical exploration.
- High Grade Intercepts: Notable high-grade intercepts include 0.93% niobium (Nb) and 2.06% total rare earth oxides (TREO).
- Significant Exploration Potential: The mineralisation remains open (subject to verification) at depth and along strike, indicating significant potential for further mineral discovery and expansion. Maximum detection limits of Nb and Ce were detected in rock chips ~2km away from the historically drilled zone.
- Strategic Location: The claims are strategically situated in the South-Central mining region of British Columbia, known for its rich mineral deposits.
- Excellent Accessibility: The site offers excellent accessibility with well-maintained road infrastructure leading directly to the area.
- Upcoming Exploration: Drill targets have been identified, setting the stage for an extensive upcoming work program aimed at further exploration and development.
Myoff Creek Acquisition Terms
AuKing has entered into an option agreement to acquire all the shares in Australian- registered company North American Exploration Pty Ltd (NAE). NAE owns 100% of eight (8) contiguous claims that comprise the Myoff Creek Project. A summary of the acquisition terms is as follows:
- A non-refundable fee of A$50k was paid by AKN on signing the agreement;
- In consideration for the acquisition of all the shares in NAE, AKN is obliged to issue 57M new AKN shares at an issue price of 1.5c per share and 28.5M free-attaching options exercisable at 3c on or before 30 April 2027 to the existing NAE shareholders and their nominees. (None of the NAE holders have any existing relationship with AKN); and
- The option must be exercised by 26 July 2024, otherwise it may lapse at the election of either party.
The NAE option agreement contains the usual warranties appropriate for a sale of shares and exploration interests in Canada. During the option period, AKN has conducted a limited due diligence review, based on access to a significant data package established by NAEas well as available external search information. Unless a significant flaw is identified in the due diligence it is AKN’s current intention to proceed with the NAE acquisition as soon as possible.
Click here for the full ASX Release
This article includes content from AuKing Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Quarterly Cashflow Report - June 2024
Boss Energy Limited (ASX: BOE; OTCQX: BQSSF) has released its Quarterly Cash Flow Report.
Click here for the full ASX Release
Production Ramp-Up Proceeding to Plan with Technology Proven at Commercial Scale
Honeymoon on track to meet FY25 production target of 850,000lbs of U308 as set out in Feasibility Study; Construction of second and third NIMCIX production columns on schedule
Highlights
Honeymoon Uranium Project, South Australia
Operations
- Successful commissioning, with Boss proving its lixiviant chemistry and ion exchange technology at commercial scale
- 57,364lbs of uranium produced during the June quarter
- Ramp-up to steady-state production proceeding to plan, with key production metrics meeting Feasibility Study forecasts
- Construction of NIMCIX columns 2 and 3 proceeding to plan and on target for commissioning in Q3 and Q4, 2024 respectively
- Preliminary updates on costs to be provided once NIMCIX columns 2 and 3 are commissioned
- Boss expects production of at least 850,000lbs of U308 in FY25; This is in line with Feasibility Study forecasts
Geology
- Strong drilling intercepts confirm production potential of Gould’s Dam at Honeymoon
- A further 96 mud rotary holes were drilled for 12,911m, with uranium mineralisation highlights including (PFN results, ppm pU3O8):
Alta Mesa, South Texas (Boss 30%)
- Successful production start-up announced 13 June 2024
- Alta Mesa expected to reach full operational capacity of 1.5Mlbs a year by 2026. Boss’ share
- of Alta Mesa production is 30 per cent (450,000lbs a year at nameplate capacity)
- Alta Mesa has potential for further resource growth and additional drying capacity of 500,000lbs a year
Corporate
- As at 30 June 2024, Boss held liquid assets of A$272.5M; Boss has no debt
- Well positioned to benefit from rising uranium prices with most of Honeymoon Life of Mine (LOM) production and all of Alta Mesa production uncontracted
- Boss continues to strengthen its senior management team in line with the Company’s growing status as a global uranium producer; Highly experienced uranium exploration geologist Dr. Andy Wilde was appointed Chief Geologist
Boss Managing Director Duncan Craib said:
“Putting cake in the can with our first production at Honeymoon was a significant milestone for Boss which proved that our lixiviant chemistry and ion exchange technology works at commercial scale.
“The production ramp up at Honeymoon, including the key production metrics, is progressing in line with our Feasibility Study forecasts and therefore we are on track to produce at least 850,000 pounds of U308 in FY25.
“This strong outlook is also supported by the progress being made in the construction of the second and third NIMCIX columns which are scheduled to start operating, in line with the production ramp-up timetable, by Q3 and Q4, 2024 respectively.
“With both Honeymoon and Alta Mesa producing, Boss has become the only multi-asset uranium producer on the ASX.”
Click here for the full ASX Release
Wiluna Uranium Project Update
Pilot plant design close to completion with start-up aimed for H2 2024
Toro Energy Limited (ASX: TOE) (‘the Company’ or ‘Toro’) is pleased to announce that the Company is continuing to advance its plans to begin operation of a pilot plant for its Wiluna Uranium Project in the second half of 2024.
- Design phase for the pilot plant commissioned by Toro is nearing completion ahead of planned start-up later this year
- Sonic drill programs designed to supply material feed to the pilot plant from all three deposits approved by the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS)
- Detailed reworking of the geometallurgical models for all three deposits, to ensure the drill plan is representative of all ore types likely to be mined and processed, has been initiated
- Pilot plant will test the improved beneficiation & hydrometallurgical circuit developed by Toro at closer to production scale
- Pilot plant to test potential ore from all three uranium deposits – Lake Maitland, Lake Way and Centipede-Millipede – these deposits could potentially underpin an expanded Lake Maitland operation
- Project optimisation work continues to evaluate further economic improvements driven by Lake Maitland’s close proximity to Toro’s 100% owned Centipede- Millipede and Lake Way uranium deposits within Wiluna by the potential integration of additional resources from these deposits. Strong improved financial outcomes from the updated Lake Maitland Scoping Study include:
- Pre-tax NPV8 of A$832.8M (+37% increase of A$223.20M)
- Excellent 48% IRR (+7% increase)
- Total EBITDA of $2,303.3M (+30% increase of A$534.4M)
- Total undiscounted cash flow of A$1,903.3M pre-tax – average >$2M per week (+36% increase of A$507.3M)
- Short payback period of 2.1 years
- Low C1 operating cost of US$17.28/lb U3O8 in years 1 to 7 when high grade uranium resource is being processed
- Strong life of mine C1 operating cost of only US$24.78/lb U3O8
- Low AISC cost of US$22.58/lb U3O8 in years 1 to 7 when high grade uranium resource is being processed
- Strong life of mine AISC cost of only US$30.55/lb U3O8
- Modest total CAPEX of US$149M plus 20% for contingency and 15% for EPCM over a 17.5 year mine life producing a total of 22.8Mlbs U3O8 and 11.9 Mlbs V2O5
Management Commentary
Commenting on the update Toro’s Executive Chairman, Richard Homsany, said:
“Toro continues to advance important workstreams across our flagship Wiluna Uranium Project in WA, and we are pleased to report that work on the pilot plant design is nearing completion. The pilot plant is an important step in demonstrating the potential scale and value of not only the Lake Maitland Uranium deposit, but of the entire Wiluna Uranium Project.
This latest body of work further builds upon the excellent economics resulting from the updated Lake Maitland Scoping Study which confirmed a significant uplift of 36% or A$223M in pre-tax NPV8 to A$832.8M.
It should be emphasised that the pilot plant will aim to test potential ore from all three uranium deposits – (1) Lake Maitland (2) Lake Way and (3) Centipede-Millipede – that Toro believes could contribute to an extended Lake Maitland processing operation. The proximity of Lake Way and Centipede-Millipede to Lake Maitland provides Toro with valuable optionality to substantially increase the feasibility of the broader Wiluna Uranium Project beyond the A$832M NPV8 resulting from the updated stand-alone Lake Maitland Scoping Study. Another outcome could be that Lake Way and Centipede-Millipede sustain a separate feasible mining and processing operation to that at Lake Maitland.
Toro remains committed to ensuring the Wiluna Uranium Project is ready to be brought into production when government policy aligns. Our ongoing evaluation work, in a strong global uranium market and backdrop of an evolving sophisticated nuclear energy debate in Australia, is exciting for Toro shareholders and potential investors.”
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This article includes content from Toro Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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