Why the 92 Energy (ASX:92E) share price is frozen today

After listing in April, 92 Energy is looking to raise addition funds …

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A dollar sign embedded in ice, indicating a share price freeze or trading halt

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The 92 Energy Ltd (ASX: 92E) share price won’t be going anywhere on Friday after the company requested a trading halt.

What’s the trading halt for?

92 Energy shares will remain halted, pending the release of an announcement regarding a capital raising.

It will remain in a trading halt until Tuesday, 28 September or upon the release of the announcement.

The 92 Energy share price successfully made its ASX debut on 15 April after a strongly supported initial public offering at 20 cents a share.

The company has $5.8 million in cash and cash equivalents based on its June quarterly activities report.

All aboard the uranium hype train

92 Energy shares have been running hot following a sudden spike in uranium spot prices.

Uranium prices briefly jumped to US$50/lb in late September, marking a 9-year high for the energy metal.

Uranium prices have been skyrocketing off the back of purchases from an investment fund, Sprott’s Physical Uranium Trust.

This has caused a sharp re-rate across ASX-listed uranium players, from established large cap players like Paladin Energy Ltd (ASX: PDN) all the way to recent IPOs like 92 Energy.

As such, the 92 Energy share price is up 173% since its first day of listing, where it closed at 28.5 cents. And up almost 400% for those that managed to participate in the IPO.

92 Energy share price jumps on uranium discovery

Shares in 92 Energy briefly touched $1.15 on Monday after the company discovered a new zone of uranium mineralisation at its 100% owned Gemini Project.

The company will now review the drill results for “insights into the geology, mineralogy and structure … to gain a comprehensive understanding of this zone as soon as possible”.

A follow-up drilling program is currently planned for the Canadian winter drilling season which typically runs from January to March.

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Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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