ASX uranium stock Alligator Energy Ltd (ASX: AGE) is tumbling 19.12% on news of a $25.5 million institutional capital raise.
The ASX micro-cap is currently trading at 5.5 cents per share.
Alligator Energy is an ASX mineral explorer focused on uranium and energy-related minerals such as cobalt and nickel.
We first heard of the miner's proposed capital raising when it requested a trading halt on Monday.
This morning, the company announced a successful institutional placement.
Let's look into the details.
ASX uranium stock dives on news of capital raise
The uranium miner said institutional and sophisticated investors have made commitments totalling $25.5 million at an offer price of 5.2 cents apiece for the stock.
Alligator Energy now intends to run a Share Purchase Plan, which will allow ordinary investors to also purchase stock, with a target of approximately $3 million in extra funds, at the same offer price.
Alligator Energy said:
Placement proceeds will enable Alligator to enhance work programs at the Samphire Uranium Project during 2024, where key upcoming activities include a feasibility study and mining lease application, as well as expanded resource drilling and geophysics program.
Total funds raised will provide a substantial runway for Alligator to progress its advancing Samphire project towards ISR uranium production, at a time of increasing interest in future uranium offtake contracts into an expanding nuclear fuel market.
That expanding nuclear fuel market that Alligator speaks of is the reason behind a surge in value for ASX uranium stocks in recent months, alongside a rapidly ascending uranium price.
The uranium price is at a 10-year high of US$62 per pound today.
It rose 2% overnight and is up 19% over the past 12 months.
Four stocks hit 52-week highs
Four ASX uranium stocks have hit new 52-week high prices in the past week.
They are:
