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Saturday, Apr 19, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
ATHA Energy increases finance offering up to $22.84M
ATHA Energy increases finance offering up to $22.84M
Image via Atha Energy.

Mining

ATHA Energy increases private placement offering up to $22.84M

The increase in size is attributed to strong demand from investors

Due to strong demand, ATHA Energy Corp. (CSE: SASK) (FRA: X5U) (OTCQB: SASKF) announced on Thursday it has increased its initial Charitable Federal Flow Through (CFT) offering to as much as C$22.8 million.

Working with the financial firms Eight Capital and Canaccord Genuity Corp. (TSE: CF) as co-lead agents and bookrunners, ATHA has increased the offering to a combination of up to 12 million ATHA Federal CFT Shares and ATHA Saskatchewan CFT Shares.

The offerings remain at the original issue prices of $1.57 per ATHA Federal CFT Share and $1.75 per ATHA Saskatchewan CFT Share.

Per the announcement, Eight Capital and Canaccord will have an option to increase the size of the CFT Offering by up to 15 per cent through the sale of up to 1.8 million additional offered shares. These shares would be offered at the requisite price, in whole or in part, at any time up to 48 hours before the closing of the offering.

Read more: ATHA Energy defines 18 high-priority prospective mining targets after EM survey

Read more: ATHA Energy aerial surveys over Athabasca Basin reveal strong potential for uranium

The increase includes a combination of up to 6.4 million charitable ATHA Federal CFT Shares and charitable Saskatchewan flow-through common shares of ATHA. It also includes up to 4 million subscription receipts of ATHA at an issue price of $1.00 per subscription receipt.

The company said that the net proceeds of the stock offering will reportedly advance the exploration and development of the company’s uranium assets, as well as for working capital and general corporate purposes.

Vancouver-based ATHA Energy holds the largest total exploration package in the Athabasca Basin, one of the largest sources of uranium worldwide.

The company announced on Thursday it will acquire 92 Energy Ltd. (ASX: 92E) and Latitude Uranium (CNSX: LUR) creating the largest exploration portfolio in Canada, offering shareholders exposure to an expansive 7.1 million acres of exploration acreage spread across the country’s top three uranium jurisdictions.

The increased market capitalization of the combined company is expected to enhance liquidity and attract heightened institutional investor interest, supported by IsoEnergy Ltd. (CVE: ISO) and Mega Uranium’s (TSE: MGA) participation as lead investors in the concurrent financing.

With historical resources boasting substantial expansion potential and exposure to a recent high-grade discovery in the Athabasca Basin, the company is poised for significant growth.

The robust pipeline of exploration catalysts, coupled with a strong balance sheet and an experienced leadership team, positions the company for success in uranium exploration, development, and value creation for shareholders.

 

ATHA Energy is a sponsor of Mugglehead News coverage

 

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