GTi Energy has marked a pivotal quarter with a positive scoping study for its Lo Herma uranium project in Wyoming, securing $4.5 million in funding led by Snow Lake Energy and gaining regulatory approval to begin drilling this September.
- Positive scoping study confirms Lo Herma project's viability
- A$4.5 million placement led by strategic investor Snow Lake Energy
- US Bureau of Land Management approves 2025 drilling plan
- Plans for resource expansion, metallurgical and hydrogeological testing
- Proposed share consolidation and company name change to American Uranium Limited
A Transformational Quarter for GTi Energy
GTi Energy Ltd (ASX – GTR) has delivered a significant update for the June quarter of 2025, underscoring its position as a key player in the US uranium sector. The company’s flagship Lo Herma Project in Wyoming’s Southern Powder River Basin has passed a critical milestone with the completion of a positive scoping study. This study, conducted by BRS Engineering Inc., highlights the potential for a low-cost, scalable in-situ recovery (ISR) uranium operation, aligning well with the US government's renewed focus on domestic uranium supply chains.
Executive Director Bruce Lane described the quarter as "transformational," emphasizing the strategic timing amid America’s nuclear energy revival. The study’s results justify advancing exploration and development, with drilling contracts secured and regulatory approvals from the US Bureau of Land Management in place for a September start.
Strategic Investment and Capital Raising
GTi Energy successfully raised A$4.5 million through a two-tranche placement targeting sophisticated and institutional investors. Notably, Snow Lake Energy (NASDAQ – LITM), a US-focused uranium and nuclear energy company, emerged as a cornerstone investor, committing to a 9.9% stake post-placement and securing the right to appoint a director to GTi’s board, pending shareholder approval. This partnership is particularly strategic given Snow Lake’s 50/50 joint venture in the adjacent Pine Ridge Project, creating a contiguous uranium development corridor in Wyoming.
The funds raised will primarily support resource expansion and infill drilling at Lo Herma, alongside further hydrogeological and metallurgical studies. The company also plans to cover landholding costs and general working capital, ensuring a robust foundation for the next development phase.
Technical Progress and Project Outlook
The scoping study evaluated various uranium price scenarios from US$60 to US$90 per pound, confirming the project’s financial attractiveness with low capital and operating costs, a short payback period, and promising returns. However, GTi has prudently withheld detailed production and financial forecasts due to a significant portion of the resource being classified as 'Inferred' under JORC standards, which requires further drilling to upgrade.
Complementing the study, recent metallurgical testing demonstrated uranium recoveries of approximately 75% using alkaline ISR methods, consistent with other successful projects in the region. Upcoming work includes groundwater pumping tests to better understand hydrology, additional metallurgical testing to refine lixiviant parameters, and environmental and logistical studies to support a full feasibility assessment.
Corporate Developments and Future Steps
GTi Energy is also seeking shareholder approval for a share consolidation and a rebranding to 'American Uranium Limited' with a new ASX ticker 'AMU,' signaling a sharpened focus on the US uranium market. The company’s cash position stood at A$307,000 at quarter-end, supplemented by unused standby equity capital of A$255,000, with the recent placement expected to bolster funding through to the next phases of development.
With drilling set to commence in September and a strategic investor onboard, GTi Energy is poised to advance one of the few near-term uranium projects in the US capable of contributing meaningfully to the country’s energy security and clean energy ambitions.
Bottom Line?
GTi Energy’s progress at Lo Herma sets the stage for a critical phase of drilling and development amid growing US nuclear energy momentum.
Questions in the middle?
- How will drilling results impact the upgrade of inferred resources to indicated status?
- What are the timelines and milestones for the full feasibility study and potential production?
- How might Snow Lake Energy’s board representation influence GTi’s strategic direction?