Lo Herma Drilling Permits Expected in August as GTi Energy Secures $4.5M Placement
GTi Energy has raised $2.5 million from the first tranche of a $4.5 million placement to fund drilling at its Lo Herma uranium project, with key permits expected in August and a strategic investment from Snow Lake Energy pending shareholder approval.
- Received $2.5 million from first tranche of $4.5 million placement
- Second tranche includes $1.487 million from Snow Lake Energy, pending approval
- Drilling permits for Lo Herma project expected to be approved in August
- Drilling program to start September targeting resource expansion and infill
- Shareholder vote planned for share consolidation and company name change
Funding Milestone and Strategic Partnership
GTi Energy Ltd (ASX – GTR) has successfully secured approximately A$2.5 million from the first tranche of a two-part placement aimed at raising a total of A$4.5 million. This capital injection is a critical step in advancing the company’s flagship Lo Herma uranium project located in Wyoming, USA. The second tranche, amounting to A$1.97 million, includes a significant commitment of A$1.487 million from Snow Lake Energy, a NASDAQ-listed uranium and nuclear energy company. Snow Lake’s investment is subject to final due diligence and shareholder approval at an upcoming extraordinary general meeting (EGM).
Regulatory Progress and Drilling Plans
GTi Energy has submitted updated drilling permit applications to the Wyoming Department of Environmental Quality and the U.S. Bureau of Land Management. Both agencies have completed initial reviews and conducted field inspections, confirming that reclamation efforts meet regulatory standards. Final approval of these permits, which will allow up to 121 drill holes totaling approximately 37,500 meters, is anticipated in August 2025. The drilling campaign is scheduled to commence in September, focusing on expanding the resource base north of existing mine units and upgrading inferred resources to higher confidence categories through infill drilling.
Technical and Environmental Objectives
The drilling program is designed not only to increase the quantity and quality of uranium resources but also to enhance understanding of the hydrogeological environment through additional observation wells. This is vital for responsible resource development and environmental management. Furthermore, diamond core drilling will provide samples for metallurgical testing, aiming to optimize mineral processing and recovery techniques, which could improve project economics and operational efficiency.
Corporate Developments and Strategic Context
Alongside the placement and drilling updates, GTi Energy will seek shareholder approval for a share consolidation and a company name change at the forthcoming EGM. These corporate actions are likely intended to streamline the company’s capital structure and better reflect its evolving strategic focus. The partnership with Snow Lake Energy is particularly noteworthy, given Snow Lake’s adjacent Pine Ridge uranium project in the Powder River Basin, which shares geological continuity with Lo Herma. This alignment could foster collaborative opportunities and enhance the regional uranium development potential.
Looking Ahead
The successful execution of the drilling program and the completion of the placement’s second tranche will be pivotal in advancing Lo Herma towards production readiness. Investors will be watching closely for permit approvals, drilling results, and shareholder meeting outcomes, all of which will shape GTi Energy’s trajectory in the competitive uranium sector.
Bottom Line?
GTi Energy’s next steps in drilling and strategic partnerships will be key to unlocking Lo Herma’s potential and attracting further investor confidence.
Questions in the middle?
- Will Snow Lake Energy complete its due diligence and proceed with the tranche-2 investment?
- How will drilling results impact the resource estimates and project valuation at Lo Herma?
- What are the implications of the proposed share consolidation and company name change for shareholders?
