Global Uranium and Enrichment (ASX:GUE) Announces Pine Ridge Acquisition and Equity Raise
Acquisition of Pine Ridge Project
Global Uranium and Enrichment Limited (ASX:GUE) has entered into a joint venture with Snow Lake Energy to acquire the Pine Ridge Uranium Project in Wyoming’s Powder River Basin. The total purchase consideration amounts to US$22.5 million, payable in three equal instalments. This acquisition positions GUE in a premier ISR uranium district with an exploration target range of 24.4 – 51.3 million pounds U₃O₈.
Equity Raise to Fund Acquisition
To support the acquisition, GUE is conducting a conditional institutional placement to raise A$9.0 million. Approximately 138.46 million new shares will be issued at a price of A$0.065, representing an 8.5% discount to the last traded price. Snow Lake Resources Limited will cornerstone the placement with a commitment of A$5.6 million and will hold a 19.9% interest in GUE post-placement. The proceeds will be used to fund GUE’s 50% portion of the first acquisition payment for Pine Ridge and to support ongoing exploration and portfolio growth.
Strategic Expansion and Project Portfolio
The Pine Ridge Project is a significant addition to GUE’s portfolio, which includes high-grade uranium projects in North America such as the Tallahassee Project with a Mineral Resource Estimate of 52.2 million pounds U₃O₈. The joint venture aims to rapidly advance Pine Ridge towards production within five years and establish a strong North American foundation for future M&A opportunities.
Future Outlook
GUE plans to undertake extensive exploration and development activities across its portfolio over the next 12 months. The company aims to capitalize on the growing demand for uranium driven by the resurgence of nuclear energy.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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