Cauldron Energy (ASX:CXU) capital raising announcement

Cauldron Energy Limited (ASX:CXU) has received firm commitments from sophisticated and professional investors to raise $2,000,000 via a placement at $0.018 per share. Additionally, the company has entered into an Underwriting Agreement to raise a further amount of up to $2,024,232 via a fully Underwritten Non-Renounceable Entitlement Offer also at $0.018 per share. The funds raised will primarily be used to advance the Yanrey Uranium project and maintain the Melrose Ni-Cu-PGE project tenements, as well as to evaluate new project opportunities and meet working capital requirements.

Executive commentary on capital raising and future prospects

Cauldron's Chief Executive Officer, Jonathan Fisher, expressed substantial interest in the capital raising, with the placement being heavily oversubscribed, indicating strong support for uranium and Cauldron's management, current activities, and stated plans. The company has identified twenty-two high priority targets across at least 15 palaeochannels within its tenement area, each holding potential to host uranium mineralisation and requiring future drill testing. The funding support received ensures that the company is well-funded to continue its exploration program and to test a number of these targets this calendar year and next, subject to weather conditions and approvals. Fisher highlighted the significance of the Bennett Well Uranium Deposit at Yanrey due to its size and amenability for in-situ leach recovery, leading to the potential for low-impact, low-cost production, providing capital and operating cost benefits over hard-rock uranium mining. He also emphasized the undeniable momentum in the uranium market driven by robust demand from a global nuclear renaissance, creating a projected shortage of uranium. Fisher expressed belief in the momentum continuing to build towards an eventual reversal of the current WA uranium mining ban, potentially establishing Western Australia as a low risk, reliable producer of uranium for global markets, contributing to the global fight to achieve Net Zero.

Summary of Cauldron Energy's capital raising and future outlook

Cauldron Energy Limited (ASX:CXU) has successfully secured commitments for a capital raising of circa $4.024M, with funds primarily allocated to advance the Yanrey Uranium project and maintain the Melrose Ni-Cu-PGE project tenements. The company's Chief Executive Officer, Jonathan Fisher, highlighted the strong support received, emphasizing the significance of the Bennett Well Uranium Deposit at Yanrey and the undeniable momentum in the uranium market. With substantial drilling programs underway and the identification of high priority targets, Cauldron aims to continue exploration and testing, anticipating further announcements of results over the coming weeks. The company's ambitions include leveraging the potential for low-impact, low-cost uranium production and contributing to the global fight to achieve Net Zero. The announcement reflects Cauldron's confidence in the future prospects of uranium and its commitment to advancing its projects in Western Australia.