Uranium Moratoriums and Financing Risks Shadow Infini Resources’ C$10M Capital Raise

Capital Raising to Boost Uranium Exploration

Infini Resources Limited (ASX, I88) has announced a transaction-specific prospectus dated 29 October 2025 for a flow-through placement aimed at raising approximately C$10 million (A$11.05 million) before costs. The offer comprises up to 14,734,052 shares priced at C$0.6787 (A$0.75) each and is targeted primarily at Canadian investors through PearTree Securities Inc., acting as agent.

The proceeds from this capital raising are dedicated exclusively to advancing exploration and drilling programs at Infini’s Canadian uranium projects, notably Portland Creek, Reynolds Lake, and Reitenbach Lake. These projects are part of the company’s broader portfolio of uranium and critical mineral assets, which also include interests in Australia.

Flow-Through Shares and Tax Incentives

The shares issued under this offer are structured as “flow-through shares” under Canadian tax legislation. This designation allows eligible Canadian investors to benefit from tax deductions and credits related to qualifying exploration expenditures that Infini commits to incur. However, the tax advantages are contingent on compliance with specific rules and acceptance by Canadian tax authorities, introducing a layer of uncertainty for investors.

Infini has committed to incurring qualifying Canadian exploration expenses equal to the gross proceeds raised by 31 December 2026 and to renounce these expenditures to investors by 31 December 2025. Failure to meet these obligations could trigger indemnity provisions, though the company cautions there is no guarantee it will have the financial capacity to satisfy such indemnities.

Navigating Regulatory and Operational Risks

The prospectus outlines a range of risks inherent to Infini’s operations. Notably, uranium mining moratoriums in the Province of Québec and Western Australia impose restrictions on exploration and development activities at key projects such as Des Herbiers in Québec and Yeelirrie North and Bellah Bore East in Western Australia. The timing for lifting these moratoriums remains uncertain, potentially impacting project valuations and timelines.

Additional risks include the need for ongoing capital to fund exploration and development, land access challenges, environmental and regulatory compliance in multiple jurisdictions, and sovereign risks associated with operating in foreign countries. The company also highlights the speculative nature of mineral exploration, with no guarantee of discovering economically viable resources.

Financial Position and Shareholder Impact

Following the offer, Infini’s pro-forma financial position reflects a strengthened cash balance, enhancing its capacity to fund exploration activities. The offer will increase the company’s issued capital by approximately 14.7 million shares but is not expected to affect control, as no single investor will exceed significant voting thresholds.

Estimated expenses related to the offer amount to around A$508,000, to be paid from existing cash reserves. The company also disclosed details of prior placements and ongoing plans for an entitlement offer involving options to existing shareholders.

Governance and Disclosure

Infini Resources is a disclosing entity under the Corporations Act and complies with continuous disclosure obligations on the ASX. The prospectus includes detailed information on directors’ interests, rights attaching to shares, and the company’s corporate governance framework. The board, led by Non-Executive Chairman Dr David Pevcic, emphasizes the speculative nature of the investment and advises prospective investors to seek professional advice.