Uranium mineral exploration company Nuclear Fuels has increased the size of its previously announced private placement from C$5m ($3.7m) to C$6.4m.

In this regard, the company reached an agreement with PI Financial, as sole bookrunner, along with PowerOne Capital Markets as co-leads.

The amended terms of the bought deal offering include 10.6 million units of the company at C$0.60 apiece, for around C$6.4m in gross proceeds.

Each unit includes one common share and one-half of one transferable common share purchase warrant.

Each warrant will be exercisable into one additional common share of the company for 36 months from closing at an exercise price of C$0.80.

In a statement, the company said: “The Company has also granted the Underwriters an option to cover over-allotments (the “Underwriters’ Option”), which will allow the Underwriters to offer up to an additional 20% of the Offering, on the same terms as the Units. The Underwriters’ Option may be exercised in whole or in part at any time prior to the closing of the Offering.”

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By GlobalData

The offering is expected to complete on or about 24 January 2024, dependent on the fulfilment of customary closing conditions.

Nuclear Fuels will utilise the net proceeds for exploration and development expenses for the Kaycee, Moonshine and other projects. The infusion will also meet the company’s general working capital requirements.

The Kaycee Project in Wyoming’s Powder River Basin (PRB) is the company’s priority project. It covers a 33-mile mineralised trend with more than 110 miles of identified roll fronts and consists of more than 42 square miles of mineral rights.

It is believed to be the only project in the PRB where all three known, historically productive sandstone formations are mineralised and potentially amenable to in situ recovery extraction.

Under Nuclear Fuels, this represents the first time since the early 1980s that the entire district is controlled by one company.

With more than 3,800 drill holes, historic drilling has confirmed uranium mineralisation in all three historically productive sandstones within the PRB, occurring over more than 1,000ft of vertical section.

The majority of the trend has not been well-explored with drilling concentrated on approximately 10% of the trend.

Nuclear Fuels acquired the Kaycee Project from enCore Energy, which retains a back-in right for 51% of the project by paying 2.5-times the exploration costs and carrying the Kaycee project to production, upon Nuclear Fuels establishing a minimum of a 43-101 compliant resource of 15 million pounds of U3O8. A 200-hole drill programme is currently under way.

The Moonshine Springs project is located in Mohave County, Arizona, US.

It covers approximately 1,000 acres, including 23 owned lode mining claims along with seven lode mining claims and 320 acres of fee land held under lease.

The property was previously explored during the 1970s and 1980s by Exxon Corp, and later by Pathfinder.