- Alligator Energy has signed a farm-in agreement with Big Lake Uranium for its namesake project in South Australia
- Alligator will spend up to $550,000 to earn a full interest in Big Lake — marking the first time the company has stepped away from the Alligator Rivers Uranium Province
- This is likely welcome news to investors, who have seen Alligator’s share price drop over 90 per cent through the last decade
- The company is launching a capital raising plan to fund the farm-in
- Alligator shares came out of a trading halt today, but have remained unchanged on the market. Shares closed once again at 0.3 cents each
Alligator Energy is stepping away from the namesake Alligator Rivers Uranium Province for the first time by inking up a farm-in agreement with Big Lake Uranium.
This may come as no surprise to shareholders after the past decade has seen Alligator’s share price declined by over 90 per cent. As at market close today, shares are worth just 0.3 cents each.
According to Alligator, the Big Lake Uranium (BLU) project complements Alligator’s current exploration strategy, representing the opportunity for rapid and low cost exploration.
Currently, the BLU project is owned by private explorer Big Lake Uranium. Alligator has signed an agreement with Big Lake, however, to earn a full interest in the company for a total potential $550,000.
Of this, $10,000 will be paid directly to Big Lake once the agreement is finalised. Then, Alligator must spend $220,000 by July 21, 2021, to meet the minimum requirements for the exploration licence, and an additional $220,00 on exploration in the area to earn its 100 per cent interest in Big Lake.
To fund this farm-in agreement, Alligator announced today it is set to raise $650,000 through a share placement.
Alligator will place 260 million new shares at 0.25 cents each, with a one-for-two attaching option exercisable at 0.5 cents by October 2020.
On top of this, the company will launch a share purchase plan in which eligible investors can buy up to $30,000 worth of new shares at the same price as the placement.
Alligator CEO Greg Hall said the company is appreciated of the support received from shareholders for the capital raise.
“Alligator Energy is pleased to have entered the announced transaction with Big Lake Uranium, and believe this represents an excellent uranium exploration opportunity in a favourable jurisdiction, complementing our search for future economic uranium deposits,” Greg said.
Alligator shares came out of a trading halt today, but have remained unchanged on the market. Shares closed once again at 0.3 cents apiece in a $3.07 million market cap.