Infini Resources Launches $3.4M Flow-Through Share Offer for Uranium Drilling

Capital Raise Details

Infini Resources Limited (ASX: I88) has lodged a transaction-specific prospectus dated 12 February 2025, announcing an offer to raise approximately C$3 million (A$3.39 million) through the issuance of 4,050,223 shares at an issue price of C$0.7407 per share. The offer is targeted exclusively at select investors via PearTree Securities Inc., acting as agent for the investors, and is structured as a flow-through share placement under Canadian tax legislation.

The shares will be issued under the company's existing placement capacity and are intended to qualify as flow-through shares, allowing Canadian investors to claim tax deductions on qualifying exploration expenditures. The offer proceeds are dedicated entirely to exploration and drilling activities at the Portland Creek Uranium Project in Canada, reinforcing Infini's commitment to advancing its critical minerals portfolio.

Strategic Focus and Use of Funds

The capital raised will be applied 100% toward Canadian exploration expenditures, including drilling and assay work, with the goal of delineating uranium resources at Portland Creek. This project is a key asset in Infini's portfolio, which also includes uranium and lithium projects in Canada and Australia. The company’s directors emphasize that the funds will accelerate exploration efforts, potentially unlocking value in a sector marked by growing demand for critical minerals.

Risk Factors and Speculative Nature

The prospectus is explicit in cautioning investors about the speculative nature of the shares. Infini Resources is currently in the exploration stage with no operating revenue and will require additional financing to progress projects toward production. Risks outlined include exploration uncertainties, regulatory moratoriums on uranium mining in Quebec and Western Australia, title and land access challenges, and fluctuating commodity prices.

In addition, the flow-through share structure introduces tax-related risks, including the company's obligation to incur qualifying expenditures and renounce tax deductions to investors within specified timelines. Failure to meet these conditions could trigger indemnity obligations, although the company notes no guarantee of financial capacity to satisfy such indemnities.

Governance and Offer Mechanics

The offer will not affect the control of the company, with no investor increasing voting power beyond 20%. The offer is not underwritten, and the directors reserve discretion to vary closing dates. The lead manager, Bell Potter Securities Limited, will facilitate a secondary on-sale of shares at a discounted price to sophisticated investors, ensuring liquidity and market distribution.

Infini Resources maintains a robust governance framework with experienced directors and management overseeing the offer and ongoing operations. The company participates in the ASX's CHESS system for electronic share registration and has disclosed detailed remuneration and security holdings of directors.

Market Context and Outlook

Share prices for Infini Resources have ranged between A$0.445 and A$0.705 in the three months prior to the prospectus, with a closing price of A$0.58 just before the offer announcement. The uranium sector remains sensitive to geopolitical and regulatory developments, and Infini’s focus on critical minerals aligns with broader market trends emphasizing energy transition materials.

Investors are advised to consider the comprehensive risk disclosures and consult professional advisers before participating. The company’s next steps include ongoing exploration updates and potential further capital raises contingent on exploration success and market conditions.