Global Uranium and Enrichment (ASX:GUE) has secured binding commitments for a $10 million placement to institutional and sophisticated investors at $0.065 per share.
The capital will be used to fund the acquisition and development of the Pine Ridge ISR Uranium Project in Wyoming's Powder River Basin, USA.
The company has entered into a joint venture agreement with Snow Lake Energy Resources, a US-focused uranium and nuclear energy firm, to acquire 100% of the Pine Ridge Project from Stakeholder Energy.
Snow Lake will invest approximately $5.8 million in the placement, securing a 19.9% equity stake in Global Uranium.
Snow Lake CEO Frank Wheatley will join Global Uranium's board as a non-executive director upon completion of the transaction.
Following its recent capital raises totalling approximately $58 million, Snow Lake is fully funded to meet its commitments under the JVA and its strategic investment in Global Uranium.
The placement remains subject to shareholder approval and due diligence completion by April 2. Settlement is anticipated by April 17.
Canaccord Genuity (Australia) acted as lead manager for the placement, which includes the issuance of 153.8 million new shares.