Generation set to resume uranium exploration at Yath, Nunavut

Generation Uranium Inc. [GEN-TSXV] said Friday it has increased the size of a previously announced non-brokered private placement financing, which is now expected to raise $1.25 million. The company said it intends to use the net proceeds to help define new drill targets on the Yath Project, a high-grade uranium property, located in the Thelon Basin, in Nunavut, Canada.

The company said the private placement offering has been increased to 5.0 million units from four million. It said the first two tranches of the private placement closed with the issuance of 4.0 million units, each of which consists of one common share and one common share purchase warrant, priced at 25 cents per unit, raising aggregate proceeds of $1.0 million.

Each warrant is exercisable into one common share at an exercise price of 45 cents per share at any time up to 24 months following the closing date. The company said a large national resource fund out of New York and Toronto is one of several subscribers participating in the offering.

Additionally, the company maintains a warrant acceleration option, allowing Generation to accelerate the expiry date of the warrants if the daily trading price of the common shares on the TSX Venture Exchange is greater than 70 cents for the preceding consecutive trading days.

Generation Uranium shares were priced at 28.5 cents on Friday and trade in a 52-week range of 29.5 cents and 0.045.

In a press release on March 19, 2024, the company said an inaugural exploration program is set to begin at the 85 square-kilometre (8,500-hectare) Yath property. “Due to strong historical sampling and anticipated long-term elevated world spot uranium pricing due to favourable supply and demand dynamics, the company expects to expend a significant amount of its capital in the Thelon Basin this year,” it said.

Generation’s Yath Project is located along trend from the 43 million pounds Lac 50 uranium deposit that is currently being advanced by Latitude Uranium, which in turn is currently being acquired by ATHA Energy Corp. [SASK-TSXV] in an all-share transaction valued at $64.7 million.

Management believes Yath covers a possible western extension of the LAC 50 trend and associated commercialization potential. Historical grades at Yath conducted by Pan Ocean Oil Ltd. in the 1980s highlight the known uranium and secondary mineralization on the property.

In 1981, sample Bog-8-80 DDH revealed a promising intersection, assaying 1.0 metre at 0.224% U308 from 25.5 metres, with chip samples registering 6.7% U308 and 0.7 ounces per ton of silver.

“With the high-grade historic results and extensive historical work, the company is anticipated to resume additional field exploration in the coming weeks at Yath to better decipher the near-term drill target potential of known uranium mineralization,’’ the company said in a press release.

“Generation believes in the untapped potential at Yath, as adequate diamond drilling was never conducted as a consequence of the downturn in the uranium prices subsequent to the Fukushima nuclear incident,’’ the company said.