GTI Energy (ASX:GTR) secures $4.5 million backed by Snow Lake to drive Lo Herma resource growth

GTI Energy (ASX:GTR) has completed a $4.5 million capital raising to support the next phase of development at its Lo Herma in situ recovery uranium project in Wyoming.

The placement received strong demand from institutional investors, with NASDAQ listed Snow Lake Energy joining as cornerstone participant.

The funds will support drilling, hydrogeological and metallurgical testing and further project advancement.

In this Q&A, GTI Energy Executive Director Bruce Lane addresses key investor questions on the significance of the raise, Snow Lake’s involvement, and what comes next for the company and its shareholders.

What is the strategic significance of Snow Lake Energy joining the register?

The involvement of Snow Lake Energy is a major step forward for GTI Energy.

Snow Lake is a US focused uranium and nuclear energy company listed on NASDAQ and they hold a 50 percent joint venture interest in the Pine Ridge project, which is directly adjacent to our Lo Herma project in the Powder River Basin.

Their decision to join the register as a cornerstone investor reflects a shared vision for the potential of this uranium trend.

Their investment will result in a 9.9 percent stake in the company once the placement is fully completed, and they will also have the right to nominate a director to our board.

That level of participation signals strategic alignment and opens the door to potential future collaboration.

We see it as a vote of confidence in our team, our project and the broader US uranium story.

“We are thrilled with the robust backing from our investors, particularly Snow Lake’s strategic investment,” Lane said. “Snow Lake’s commitment is strategically significant due to the proximity of its 50 50 JV Pine Ridge project, which adjoins Lo Herma along trend.”

How will the $4.5 million in placement funds be used?

The funds raised will be directed primarily toward expanding and upgrading the Lo Herma resource.

Our focus is on advancing the project to the next stage through both step out and infill drilling.

The step out holes aim to convert exploration target areas to grow the resource beyond its current boundaries whilst infill drilling will help improve confidence within existing inferred mineralisation.

These programs are essential to progress from early stage resource studies toward more advanced development stages.

We are also allocating funds for hydrogeological and metallurgical studies, which are critical to understanding groundwater conditions and extraction characteristics in an in situ recovery setting.

Beyond that, some funds will be applied to landholding costs, working capital, and costs associated with the offer itself.

“The placement provides us with the financial runway to advance Lo Herma through the next phase of drilling and fieldwork, aimed at expanding and upgrading the project’s resource base,” Lane noted.

Why was the placement priced at a premium to the last traded price?

Raising capital at a premium is not typical in the small cap space, so we see this outcome as a clear reflection of the strength of our asset and strategy.

The shares were issued at 0.0035 dollars, a 16.7 percent premium to the last traded price, and only a modest 14.2 percent discount to the 30 day volume weighted average price.

This premium was possible because of strong demand from new and existing investors, including both domestic and international institutions.

The involvement of Snow Lake Energy also added weight to the offer and helped support the pricing.

In addition to shares, participants will receive attaching listed options on a one for two basis, subject to shareholder approval.

This structure gives investors both near term exposure and longer term upside, while giving the company the capital it needs to keep progressing at pace.

What does the company hope to achieve with the next phase of drilling at Lo Herma?

We are aiming to expand the scale of the Lo Herma resource and increase its level of geological confidence.

We recently completed a Scoping Study that demonstrated positive baseline economics, and now the goal is to build on that by refining and growing the resource.

Infill drilling is designed to convert areas of known mineralisation from inferred to indicated status, which is important for any future development study.

Expansion drilling will test the exploration target areas to add extra resources from beyond the current resource envelope, which could add further pounds of uranium and improve the overall development case.

We are targeting a window of opportunity in the US market where domestic uranium production is increasingly seen as a matter of significant strategic importance.

Advancing Lo Herma at this time positions us to be part of that supply solution for the growing US nuclear power industry.

“We look forward to building on the positive baseline economics established in our recently completed Scoping Study, further strengthening the investment case for Lo Herma,” Lane added.

What are the upcoming corporate actions shareholders should be aware of?

There are three key corporate items on the table for the upcoming Extraordinary General Meeting.

First, we will be seeking approval to issue the second tranche of shares under the placement, which includes Snow Lake’s investment and the attaching listed options.

Second, we are proposing a share consolidation, this will reduce the number of shares on issue and is intended to improve the capital structure and increase the appeal of our stock, particularly for institutional investors.

Finally, we will be putting forward a resolution to change the company name, which is part of a broader rebranding initiative that aligns with our focus on US based uranium exploration and development.

Shareholders will receive the full details in the Notice of Meeting, which is expected to be distributed within two weeks.

“With the US nuclear power sector gaining momentum and uranium supply tightening, we are well positioned to grow Lo Herma and enhance its resource confidence,” Lane said.

Strengthening the Path to Development

This latest placement provides more than just funding, it confirms growing institutional interest in GTI’s Lo Herma Project and introduces a new strategic partner in Snow Lake Energy.

With drilling programs planned, key studies underway, and corporate streamlining on the horizon, GTI Energy is moving purposefully toward its goal of becoming part of a secure and scalable domestic uranium supply chain.

Shareholders can expect regular updates as the next phase of growth gets underway.

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