Alligator Energy Raises $17.25M to Fund Samphire Development and Drilling

Capital Raise Strengthens Development Momentum

Alligator Energy Limited (ASX – AGE) has successfully secured firm commitments to raise A$17.25 million through a placement of over 556 million new shares priced at 3.1 cents each. The capital raising, led by Bell Potter Securities and Taylor Collison, attracted strong interest from both domestic and international institutional investors, significantly bolstering the company’s shareholder base.

This injection of funds comes at a pivotal moment for Alligator, as it prepares to advance its flagship Samphire Uranium Project in South Australia. The placement proceeds will support a range of critical activities, including the imminent Field Recovery Trial (FRT), feasibility studies, and resource drilling programs targeting satellite prospects such as Plumbush and extensions to the Blackbush deposit.

Focused Deployment of Capital

The company has outlined a clear allocation of the raised capital – approximately A$5.5 million will be dedicated to progressing Samphire from exploration to development, including extended testing phases of the FRT and initiating mining lease applications. A further A$6.6 million is earmarked for exploration and resource drilling, with a focus on expanding known uranium resources and advancing discovery potential at Big Lake.

Additionally, around A$4.1 million will be reserved for working capital and business development, ensuring operational flexibility as the company navigates regulatory approvals and stakeholder engagement. The capital raise also includes the issuance of options exercisable at 4.7 cents, representing a 50% premium to the placement price, subject to shareholder approval at an upcoming extraordinary general meeting.

Advancing Towards Production

CEO Greg Hall emphasized that the capital raising provides the necessary runway to conclude the FRT, which is expected to deliver key operational parameters for a definitive feasibility study. The company plans to commence construction of the FRT and production well drilling by August-September 2025, with commissioning targeted for the final quarter of the year.

Parallel to these activities, Alligator will initiate mining lease applications and continue land access negotiations to facilitate resource expansion drilling. The company also anticipates engaging in initial conditional offtake contract discussions during the feasibility study phase in 2026, signaling a strategic push towards in-situ recovery (ISR) uranium production.

Market Context and Outlook

Alligator’s timing aligns with a supportive uranium market backdrop, underpinned by sustained long-term prices around US$80 per pound and growing demand driven by global nuclear energy programs, including those fueled by artificial intelligence data center growth. The company’s strengthened financial position and upcoming operational milestones are expected to generate a steady stream of news flow through the remainder of 2025 and into 2026, potentially enhancing shareholder value.

While the placement was conducted at a discount to recent trading prices, the premium exercise price of the attached options offers investors an upside participation aligned with the company’s development progress. The success of regulatory approvals, exploration results, and market conditions will remain key factors influencing Alligator’s trajectory.