Cauldron Launches $1.95M Underwritten Offer at 25% Discount to Advance Uranium Assets
Cauldron Energy has launched a fully underwritten entitlement offer to raise nearly $2 million, aiming to advance its Yanrey Uranium Project amid growing global uranium demand and hopes for regulatory change in Western Australia.
- Fully underwritten $1.95 million entitlement offer at $0.006 per share
- Offer price set at 25% discount to 7-day VWAP
- Funds targeted to advance Yanrey Uranium Project and support working capital
- Yanrey Project hosts over 42 million pounds of uranium oxide resources
- Major shareholder Parle Investments Pty Ltd underwriting the offer with no fees
Capital Raise to Fuel Uranium Ambitions
Cauldron Energy Limited (ASX: CXU) has announced a fully underwritten renounceable entitlement offer to raise approximately AUD 1.95 million. The offer price of $0.006 per share represents a 25% discount to the company’s recent 7-day volume weighted average price, reflecting a strategic move to secure funding efficiently. Major shareholder Parle Investments Pty Ltd has committed to underwriting the entire offer without charging fees, signaling strong internal confidence in Cauldron’s prospects.
Advancing the Yanrey Uranium Project
The funds raised will principally be directed towards advancing the Yanrey Uranium Project, located about 100 kilometres south of Onslow in Western Australia. Covering roughly 1,327 square kilometres, Yanrey is a significant uranium exploration area with multiple deposits, including the Bennet Well and Manyingee South deposits. Together, these deposits contain over 42 million pounds of uranium oxide, positioning Yanrey as a potentially major player in the uranium sector.
Strategic Timing Amid Regulatory Uncertainty
Cauldron’s CEO Jonathan Fisher highlighted the timing of the capital raise as critical, given the global momentum behind uranium driven by a nuclear renaissance and projected supply shortages. The company is optimistic about a future lifting of the uranium mining ban in Western Australia, which would unlock significant value for Yanrey. Fisher emphasized that such regulatory change would enable the project to become a low-risk, reliable uranium supplier, contributing to global net-zero ambitions.
Robust Resource Base and Exploration Outlook
The announcement includes detailed mineral resource estimates compliant with JORC 2012 standards. The Bennet Well deposit alone hosts nearly 31 million pounds of uranium oxide, while Manyingee South adds over 11 million pounds. Cauldron’s technical team is actively testing more than twenty high-grade targets within the project area, aiming to expand the resource base further. The company’s recent successful drilling and resource updates underpin its confidence in Yanrey’s potential.
Entitlement Offer Details and Shareholder Participation
The entitlement offer allows eligible shareholders to subscribe for two new shares for every nine shares held, with rights being renounceable and tradable. The offer timetable anticipates closing in mid-June 2025, with the company retaining flexibility to extend if needed. Shareholders are encouraged to participate to support the company’s growth trajectory and capitalize on the uranium market’s positive outlook.
Bottom Line?
Cauldron’s successful capital raise sets the stage for Yanrey’s next growth phase, but regulatory hurdles in Western Australia remain a key watchpoint.
Questions in the middle?
- When might Western Australia lift its uranium mining ban, and how will that impact Yanrey’s development timeline?
- What are the prospects for further resource expansion within the Yanrey project’s numerous high-grade targets?
- How will global uranium market dynamics influence investor appetite for Cauldron’s shares post-offer?
