ENRG Elements Raises $2.2M After Securing 3-Year Agadez Permits and Strong Uranium Results
ENRG Elements Limited has renewed key uranium exploration permits in Niger and reported outstanding trenching assay results, while securing $2.2 million in new funding to advance its projects.
- Agadez Uranium Project permits renewed for three years without relinquishment
- Trenching program yields high-grade uranium assays up to 5.84% U3O8
- Successful $2.2 million capital raise via entitlement offer and private placement
- Exploration programs planned for early 2025 to build on positive geological validation
- Selective relinquishment of lithium permits to focus resources on core assets
Renewed Permits Cement Niger Presence
ENRG Elements Limited (ASX:EEL) has reinforced its foothold in Niger’s uranium-rich Tim Mersoi Basin by securing a three-year renewal of its exploration permits covering approximately 726 square kilometres at the Agadez Uranium Project. This renewal, granted without any relinquishment, signals strong government confidence and provides a stable platform for the company’s ongoing exploration ambitions through to 2027.
Managing Director Caroline Keats highlighted the strategic importance of this milestone, noting it not only affirms ENRG’s position in a globally significant uranium jurisdiction but also sets the stage for accelerated field activities in the coming year.
High-Grade Trenching Results Validate Geological Model
The company’s recent trenching program at the Takardeit area within the Terzemazour 1 permit has delivered exceptional assay results, with uranium oxide (U3O8) grades reaching as high as 5.84%. Out of 106 samples, 19 returned values exceeding 1% U3O8, and 73 samples surpassed 500ppm, underscoring the continuity of high-grade mineralisation associated with a braided fluvial paleochannel system.
These results corroborate ENRG’s existing geological model and previous rock chip sampling, which had identified grades up to 34.3% U3O8 in nearby zones. The trenching program’s success unlocks several high-priority drill targets, which the company plans to pursue in its upcoming exploration campaign scheduled for the first quarter of 2025.
Capital Raising Fuels Exploration Momentum
To support its expanding exploration pipeline, ENRG successfully completed a two-for-one pro-rata renounceable entitlement offer in November 2024, raising approximately $2.09 million before costs. This followed a private placement in October that brought in an additional $118,000, culminating in a total capital injection of $2.2 million.
The funds are earmarked for advancing the Agadez Project, progressing technical assessments of other assets, and general working capital. The strong investor support reflects confidence in ENRG’s strategy and the potential of its uranium and copper portfolio.
Portfolio Optimization and International Footprint
While focusing on uranium, ENRG has made strategic decisions to streamline its lithium exploration efforts. The company relinquished its Tarouadji 2 permit in Niger and the Unwin Lake permit in Manitoba, Canada, to concentrate resources on higher-priority projects.
Internationally, ENRG maintains interests in copper-silver projects in Botswana’s prolific Kalahari Copper Belt, holding 10% in the Ghanzi West Project and 25% in the Virgo Project. Both projects benefit from proximity to significant discoveries and stable mining jurisdictions, positioning ENRG well for future growth beyond uranium.
Looking Ahead
With a cash balance of approximately $2.5 million at the end of December 2024 and a clear exploration roadmap, ENRG is poised to build on its recent successes. The company awaits the outcome of a Technical Assistance grant application to the US International Development Finance Corporation, which could provide additional support for its Niger operations.
Investors will be watching closely as ENRG embarks on its next phase of drilling and exploration, aiming to convert promising trenching results into a robust resource base that can underpin long-term value creation.
Bottom Line?
ENRG’s renewed permits, high-grade assays, and fresh capital position it well for a pivotal exploration year ahead.
Questions in the middle?
- Will the upcoming drilling campaign confirm and expand the high-grade uranium zones identified in trenching?
- What is the likelihood and potential impact of securing the US DFC Technical Assistance grant?
- How will ENRG balance its uranium focus with its copper and lithium interests amid evolving market dynamics?
