ATHA Energy Corp. (CSE: SASK) (FRA: X5U) (OTCQB: SASKF) closed its private placement announced in early December with an even greater aggregate amount than expected.
The Athabasca Basin uranium explorer announced Thursday that the financing had been finalized with proceeds totaling C$23.49 million. The transaction was completed with assistance from the financial firms Eight Capital and Canaccord Genuity Corp. (TSX: CF).
“Today’s close of ATHA’s ~$23.5 million financing demonstrates the strong institutional support for ATHA’s scaled exploration strategy,” Troy Boisjoli, CEO of the company, said. ATHA increased the private placement offering to C$22.8 million on Dec. 7 before the conclusion of the financing.
“And upon closing of our recently announced acquisitions, [the financing] will provide the company with approximately C$65 million to fully fund our planned exploration activities to provide leading exploration exposure in the uranium sector.”
Boisjoli emphasized that the world’s uranium market was entering an unprecedented upswing. He said ATHA was specifically founded to capitalize on the growing demand for uranium.
Read more: ATHA Energy to acquire Latitude Uranium and 92 Energy, creating industry’s largest uranium portfolio
Read more: ATHA Energy increases private placement offering up to $22.84M
Increased funding, increased land package
ATHA will soon expand its influence in the Athabasca Basin and enter uranium exploration territory in eastern Canada. The recently announced acquisitions of Latitude Uranium Inc. (CSE: LUR) (OTCQB: LURAF) and 92 Energy Limited (ASX: 92E) (OTCQX: NTELF) will make this possible.
Latitude holds an exploration portfolio in Nunavut and Labrador and 92 Energy has a series of projects in the Basin. Once the acquisitions are finalized, the combined company will hold a 7.1 million acre Canadian land package.
A C$14 million financing is being completed for the acquisitions with substantial contributions from uranium explorers IsoEnergy Ltd. (TSX‐V: ISO) and Mega Uranium (TSX: MGA).
In November, ATHA identified 18 high-priority uranium targets to pursue in the Athabasca Basin after completing the region’s largest-ever electromagnetic survey.
The company is actively involved in a joint venture with Stallion Uranium Corp. (TSX-V: STUD) (OTCQB: STLNF) in the region. ATHA also benefits from a 10 per cent carried interest on certain portions of the land package held by NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE), a top uranium mining company.
ATHA’s exploration activities will be well-funded into 2025 and beyond.
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