American Uranium Raises Up to $2.59M via 1-for-6 Entitlement Offer with Attaching Options

Entitlement Offer Targets Lo Herma Project Growth

American Uranium Limited (ASX:AMU) has initiated a pro-rata non-renounceable entitlement offer designed to raise up to $2.59 million by issuing new shares at 12 cents each. Eligible shareholders in Australia, New Zealand, and Canada can subscribe for one new share for every six held, with a 1-for-2 attaching option exercisable at 16 cents and expiring on 30 June 2029 sweetening the deal. The offer timetable has been extended to accommodate the finalisation of the prospectus for these attaching options.

The capital raised will primarily support expansion and infill drilling, along with hydrogeological and metallurgical studies at the Lo Herma ISR Uranium Project, the company’s flagship asset. Additional funds will cover landholding costs, offer expenses, and general working capital. All new shares will rank equally with existing shares and are expected to commence trading on the ASX from 25 May 2026. The attaching options will not be quoted.

Resource Base Remains Robust Amid Ongoing Exploration

American Uranium also provided an update on its Wyoming uranium mineral resources and exploration targets, confirming no material changes since previous disclosures. The Lo Herma project boasts an updated Mineral Resource Estimate (MRE) of 9.45 million pounds of uranium oxide (eU3O8) at an average grade of 720 ppm, with 46% classified as indicated. Alongside this, the Great Divide Basin holds an inferred resource of 1.66 million pounds, bringing total Wyoming mineral resources to 11.11 million pounds.

The company’s exploration targets remain conceptual and not yet JORC-compliant, with a combined estimated range from 12.34 to 15.65 million tonnes at grades between 420 and 700 ppm U3O8. These figures are based on extensive drilling campaigns, including over 1,000 drill holes at Lo Herma, aerial geophysics, and historical data verification.

This entitlement offer follows closely on the heels of a recent $2.58 million rights issue that was also aimed at accelerating drilling and technical studies at Lo Herma, indicating a sustained push to advance the project ahead of a planned Q3 2026 scoping study. The company’s strategy to fund exploration through multiple capital raises, including the recent placement led by CPS Capital Group, underscores its focus on resource expansion and technical validation.

Offer Details and Shareholder Options

Shareholders registered at 4pm WST on 28 April 2026 will be eligible to participate. They may subscribe for their full entitlement, part of it, or allow it to lapse. Any shortfall shares post-offer may be allocated to exempt investors at the directors’ discretion within three months, subject to ASX rules.

Notably, the entitlement offer is not underwritten, which introduces some uncertainty regarding the final amount raised. The company retains flexibility to alter the use of funds depending on operational needs and market conditions.