92 Energy raises after uranium discovery

URANIUM explorer 92 Energy has raised A$7.15 million through Canaccord Genuity.

The issue price of 72c was a 5.9% discount to the last closing price and a 6.1% premium to the 15-day volume-weighted average price.

The company reported strong support from several high-quality domestic and offshore institutional investors.

92E already had $5.8 million cash after its $7 million initial public offering in April, but it has enjoyed share price gains of late due to improved uranium market sentiment and a new discovery announced last week.

The company hit 5.5m at 0.12% uranium oxide, including 1m at 0.28% at its Gemini project, just 27km from Cameco's McArthur River mine.

The placement funds will be used to accelerate drilling to follow-up the discovery and for exploration on the company's other projects in the Athabasca Basin.

"This placement represents a significant milestone for the company and provides important external validation for the recent discovery of uranium mineralisation at the company's 100%-owned Gemini project in the Athabasca Basin," 92E managing director Siobhan Lancaster said.  

"We look forward to the upcoming drilling program at Gemini which will assist us to determine the extent of the uranium mineralisation at the Gemini mineralised zone."

Lancaster will head to Canada this week.

92E's IPO listing price was 20c, but its shares have risen as high as $1.15 this month.

The company last traded 1.9% lower at 75c, giving it a market capitalisation of about $50 million.

Kristie Batten