The Essential Metals Ltd (ASX: ESS) share price is plummeting on news of its recent drilling campaign.

The company has announced its Dome North drill program doesn’t appear to have found any lithium-mineralised pegmatite.

At the time of writing, the Essential Metals share price is 17.5 cents, 20.45% lower than its previous closing price.

Let’s take a closer look at today’s announcement from the exploration and mining company.

Essential Metals’ worrying announcement

The Essential Metals share price is plunging on news of the company’s Pioneer Dome Lithium Project.

The update was filled with optimism about the project’s future development but the market’s sentiment might be lingering on its lack of spodumene.

Essential Metals noted, “geological logging of the drill chips does not indicate the presence of visual spodumene”.

However, the company doesn’t expect to receive assay results from its Dome North drill program until early-to-mid-October.

While the findings have seemingly disappointed the market, the company said they’re important for future targeting of pegmatites in and around the underexplored Dome North Resource.

Further, Essential Metals is planning a new phase of drilling for the final quarter of 2021 in hopes of upgrading the project’s Cade and Davy deposits. Currently, the deposits are ‘inferred’ and the company wants to boost them to ‘indicated’.

Though, the company noted that diamond drill rigs are hard to come by right now. It’s doing what it can to secure the needed drill rigs.

It is also undertaking studies needed to receive regulatory approvals and advance the project’s technical and financial studies.

These include scoping studies, surveys of flora and fauna and groundwater sources, and preparations for a mining lease application.

Essential Metals expects the studies will be finished by December and a mining lease will be granted in 6 to 12 months.

Essential Metals share price snapshot

Despite today’s notable dip, the Essential Metals share price has been performing well on the ASX lately.

It is currently 118% higher than it was at the start of 2021. It has also gained 25% since this time last year.

The post Essential Metals (ASX:ESS) share price tumbles 20% on lithium update appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Beach shares jump, a2 Milk rises
• Will Ethereum overtake Bitcoin?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Eastern Iron Limited (ASX:EFE) share price won’t be going anywhere today.  

Shares in the exploration company entered a trading halt earlier, whilst also releasing several other updates.

Let’s take a closer look at what’s happening with the Eastern Iron share price.  

Why is the Eastern Iron share price halted?

Earlier today Eastern Iron requested that its shares be placed in an immediate trading halt.

The exploration company noted that securities will remain in a halt until the release of an announcement regarding an updated mining study for its Nowa Nowa iron project.

Easter Iron noted that the trading halt was requested so that the company can manage its continuous disclosure obligations.

According to the company, the trading halt will last until Thursday 30 September 2021 or when the announcement is released to the market.

What else did Easter Iron announce?

In addition to its trading halt, Easter Iron also announced changes to its Board.

The company has appointed Mr Jason Hou to the Board following the resignation of Mrs Therese-Marie Taylor.

Eastern Iron noted that Mr Hou has a professional background in finance and is well known to the company through his financial consulting services.

More on the Eastern Iron share price

Eastern Iron is an iron ore exploration company with its flagship Nowa Nowa Iron project located in Victoria.

Shares in Eastern Iron have had a stellar year thus far.

Since the start of 2021, shares in the company have stormed more than 344% higher.

Much of the company’s share price gain has been realised this past month.

There have been several catalysts that have helped propel the Eastern Iron share price higher.

Shares in the company took off in early September after announcing a joint venture with Ya Hua International Investment and Development Co Ltd to acquire and develop lithium projects.

The Eastern Iron share price received another boost following a strategic placement and equity raising earlier this month.

The placement of $1.05 million was made to Ya Hua, making the company a substantial shareholder of Eastern Iron.

An additional tranche of $2.52 million will be placed to sophisticated and institutional investors.

Before entering a trading halt, the Eastern Iron share price closed yesterday’s session at 4.3 cents.

The post Why is the Eastern Iron (ASX:EFE) share price halted? appeared first on The Motley Fool Australia.

More reading

• Eastern Iron (ASX:EFE) share price leaps 20% today and 50% in a week
• Why is the Eastern Iron (ASX:EFE) share price in recess
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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Tesserent Ltd (ASX: TNT) share price is under pressure on Tuesday after the company received binding commitments to raise $25 million.

At the time of writing, shares in the cybersecurity and cloud services company are down 6.38% to 22 cents.

Tesserent share price dives on successful capital raising

Tesserent successfully raised approximately $25 million at an offer price of 21 cents per share.

This represents a 10.6% discount to its last traded price on Thursday, 23 September of 23.5 cents.

According to the company’s announcement, the placement was “significantly oversubscribed” with strong support from new and existing investors.

The capital raising will issue up to approximately 119 million new shares, representing approximately 11.1% of the existing shares on issue.

The resulting dilution for existing shareholders and offer discount is likely weighing on the Tesserent share price on Tuesday.

Management commentary

Tesserent’s co-CEO Julian Challingsworth commented on the capital raising, saying:

We are pleased at the success of this equity raising to support the enhancement of our core capabilities and operational footprint in strategic high growth locations with a focus on the federal government market.

What’s the capital raising for?

It is understood that Tesserent will use the proceeds to fund strategic acquisitions and pay off deferred acquisition payments including:

• ~$6 million for the upfront cash component for Loop Secure
• ~$5 million for the deferred cash consideration and earn-out component of Airloom
• ~$11 million for the 40% cash consideration of strategic acquisitions under the acquisition strategy previously closed to market
• ~$3 million relating to planned investments and capital raising costs

Tesserent share price snapshot

The Tesserent share price is down 35% year-to-date.

This is despite the company successfully executing its aggressive acquisition strategy and delivering triple-digit revenue growth in FY21.

The post Tesserent share price slumps 6% following capital raise appeared first on The Motley Fool Australia.

More reading

• Why the Tesserent (ASX:TNT) share price is frozen today
• Why is the Tesserent (ASX:TNT) share price down 22% in a month?
• Tesserent (ASX:TNT) share price fails to fly despite 230% revenue growth in FY21

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Great Boulder Resources Ltd (ASX: GBR) share price has slipped from its all-time high in recent days and now trades at 17.5 cents.

In fact, Great Boulder shares have been on a bumpy ride since we started walking through September, having climbed 105% in a matter of weeks.

Read on for more details.

A quick rundown on Great Boulder Resources

Great Boulder Resources is in the minerals exploration business, with particular niche expertise in nickel, copper, cobalt and gold resources in WA.

The company has its footprint located in Australia and derives all of its revenue from the local market.

At the time of writing, Great Boulder has a market capitalisation of $73 million.

Why is the Great Boulder share price down today?

In order to answer this question, we first have to take a step back and take a look at what led us here in the first place.

On 2 September, Great Boulder announced initial results from the third phase of its reverse circulation (RC) drilling program at its Mulga Bill prospect in WA.

The assay results revealed significant gold grades across 6 holes at the prospect, which are the highest grades ever recorded at the site.

Immediately the Great Boulder share price jumped 108% to 17.5 cents on the day of the announcement.

Since, shares in the mining exploration company have trended sideways, before making another jump on 23 September to reach all-time highs of 20.5 cents apiece.

As of today, the company released another announcement on its Mulga Bill prospect, noting it had found another gold mineralisation at the site.

Final results from the company’s RC drilling program at Mulga Bill “highlight the continuity of significant gold mineralisation on the eastern trend at (the site) over 400 metres in strike”.

Speaking on the results, Great Boulder’s managing director, Andrew Paterson said:

Infill RC drilling continues to define the high-grade zones in the central area of Mulga Bill. We have now completed a fourth round of RC drilling which is continuing to build our confidence in the high grade gold structures.

Investors appear to have wanted more milk from the cow in the Mulga Bill prospect, and have sold Great Boulder shares on the news.

It remains unclear exactly as to why investors are unhappy with the news, but the company did release a response to a query from the ASX regarding its share price and volume today as well. Perhaps this is weighing in some.

Currently, the Great Boulder share price is trading down 18% on the day, back towards its average September price level.

Great Boulder Resources share price snapshot

The Great Boulder share price has gained a mammoth 258% this year to date, extending its gains in the past 12 months to 243%.

Both of these results have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of about 25% in the last year.

The post Why the Great Boulder (ASX:GBR) share price is plunging 15% today appeared first on The Motley Fool Australia.

More reading

• Great Boulder (ASX:GBR) share price rockets 68% on drilling results

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is giving back yesterday’s gains and more. The benchmark index is currently down 0.8% to 7,323.4 points.

Here’s what is happening on the ASX 200 today:

Beach shares charge higher

The Beach Energy Ltd (ASX: BPT) share price is charging higher today after the release of an investor update. According to the release, the company has outlined its low risk strategy targeting production of 28 MMboe by FY 2024. This represents a 27% increase on the midpoint of its FY 2022 guidance of 21 to 23 MMboe. This target excludes exploration upside and pre-final investment decision projects.

Origin’s successful investment

It has been a good day for the Origin Energy Ltd (ASX: ORG) share price following an update on its investment in Octopus Energy. According to the release, the UK based energy retailer and emerging technology business has received a 211 million pounds investment from Generation Investment Management for a 7% stake. This investment values Octopus at approximately 3 billion pounds or $5.5 billion. As a comparison, last year Origin agreed to invest a total of $507 million for a 20% stake in the company. Origin has also invested to maintain its current interest.

A2 Milk shares rise

Also performing positively today is the A2 Milk Company Ltd (ASX: A2M) share price. The infant formula company’s shares are pushing higher today after analysts at Citi retained their buy rating and $7.20 price target. The broker believes there could be more bad news on the horizon. However, it suspects that any share price weakness could be greeted by a takeover offer.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Beach share price by some distance. Its shares are up 8% at lunch following its investor update. The worst performer has been the Megaport Ltd (ASX: MP1) share price with a 7% decline on no news.

The post ASX 200 (ASX:XJO) midday update: Beach shares jump, a2 Milk rises appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended A2 Milk and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Bitcoin (CRYPTO: BTC) has long been the most popular cryptocurrency, almost becoming synonymous with the category in the public consciousness.

For almost as long, Ethereum (CRYPTO: ETH) has played the bridesmaid as the second most prevalent digital currency.

But one expert reckons Ethereum has several aspects going for it that could give it a fighting chance to overtake Bitcoin.

According to Saxo Markets cryptocurrency analyst Mads Eberhardt, the last time Ethereum had a chance to do this was during the 2017 boom.

“In late 2017, the most discussed topic in the crypto space… was whether Ethereum would flip Bitcoin in terms of market capitalisation,” he said.

“It never happened in 2017, as the Ethereum bull run in 2017 was somewhat unsustainable, as it was mainly driven by the ICO [initial coin offering] bubble.”

Ethereum’s ‘crypto winter’ boost

After that, cryptocurrency prices plunged and went sideways for much of 2018 and 2019.

During this “crypto winter”, Bitcoin’s lead grew as a “safe-haven asset”. But, functionally, Ethereum started having a remarkable time.

“In the crypto winter, serious innovation took place in the crypto community, whereas numerous new use cases on Ethereum were presented… non-fungible tokens (NFTs), stablecoins, decentralised trading, insurance, and lending, counting protocols like MakerDao, Uniswap, Compound, and OpenSea,” said Eberhardt.

Once cryptocurrencies regained momentum last year, Ethereum took off. It went from $213 in late March 2020 to now more than $4,000.

Eberhardt believes those real-life applications developed over the crypto winter convinced the market of the usefulness of Ether.

“Investors get the sense that Ethereum can facilitate authentic use cases in strong contrast to previous highly speculative ICOs.”

Ether is already bigger than Bitcoin on some measures

According to Eberhardt, the Ether-Bitcoin “flip” has already happened on some metrics.

“The use of notably decentralised protocols and stablecoins on Ethereum have made Ethereum settle over 3 times the value of Bitcoin on its network on a daily basis, while the total amount of fees paid daily is 50 times higher than on Bitcoin.”

This is not surprising to Eberhardt because of Ethereum’s utility, as opposed to Bitcoin’s role as just a “store of value”.

“In this context, the transaction fees paid markedly say something about Ethereum’s scalability being almost as bad as Bitcoin’s,” he said. 

“As Ethereum is able to handle only around 15 transactions per second, the fees have escalated significantly over the past year, effectively acting as a detriment to Ethereum’s growth.”

However, this scalability issue will be resolved in an upgrade dubbed ETH 2.0, due next year.

Is flipping inevitable?

Technology upgrades are crucial to Ether’s ability to overtake Bitcoin in market capitalisation, according to Eberhardt.

“This involves increasing scalability within an acceptable short timeframe, adequately keeping the intense competition coming its way at arm’s length,” he said.

“In terms of regulation, decentralised protocols using Ethereum can be subject to heavy regulation, imaginably limiting the growth of Ethereum. On the contrary, the green agenda can hurt Bitcoin due to its extreme energy consumption.”

The other side of the equation is whether Bitcoin’s role as a store of value is further recognised by institutional investors.

Prominent listed companies like Tesla Inc (NASDAQ: TSLA) and MicroStrategy Incorporated (NASDAQ: MSTR) revealed earlier this year that they have billions of dollars worth of Bitcoin on their books.

“There was an expectation earlier this year succeeding the purchases by several companies that others would follow the lead. Since then some minor companies have bought Bitcoin, but not to the degree expected previously.”

So it remains to be seen whether Ether can overtake Bitcoin. Both currencies have challenges to overcome in the next 12 months or so.

JP Morgan analysts this week reported that institutional investors have reduced their exposure to Bitcoin and transferred it to Ethereum.

“Researchers found that big investors are eschewing Bitcoin futures, pivoting instead to Ethereum as the number two cryptocurrency by value gains momentum thanks to the ongoing non-fungible token craze and expectations Ethereum-based decentralised finance will rival traditional finance,” reported Forbes.

The post Will Ethereum overtake Bitcoin? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Ethereum, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended MicroStrategy. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Coronado Global Resources Inc (ASX: CRN) share price is spending some time in the red on Tuesday morning, now trading at $1.33 apiece.

Yet Coronado shares have delivered outsized returns over the last month, having gained 30% – well ahead of the S&P/ASX 200 Index (ASX: XJO)’s drop of 2% during this time.

Let’s see what’s been fuelling this growth.

But first – a quick recap on Coronado Global Resources

Coronado is in the business of producing high-quality metallurgical coal, also known as coking coal. It is an essential ingredient for steel production worldwide.

The company has a portfolio of operating mines, mining complexes and projects in Queensland and the US, with a footprint that also spans across the Asia Pacific, India and Brazil.

At the time of writing, Coronado Global has a market capitalisation of $2.25 billion.

What’s fuelling the Coronado share price lately?

We can’t assess Coronado Global’s share price without first addressing the elephant in the room and that’s the current prices coal is fetching on commodity markets.

Coal pricing has been on a rampage in 2021, reaching all-time highs in June. It now trades at US$204.8/tonne, a 274% increase over the last 12 months.

Coronado is an ASX resources share that produces a commodity, meaning its share price will fluctuate with volatility in the broader commodity markets.

With this information in mind, and with a recent uptick in coal pricing since August, a picture starts to form as to what’s driving returns here.

Coronado Global’s share price has also been on the move after two key updates in the company’s growth narrative.

In late June, the company announced the resignation of its secretary, vice president and chief legal officer Richard Rose.

Rose joined Coronado in 2017 and saw the company through its ASX listing in 2018. Coronado said Rose would stay on until a replacement was found either internally or externally.

Last month, the company released its half-year results. In its report, the company recognised a 10% year on year (YoY) increase in saleable production while revenue grew 12% YoY.

Despite the growth, Coronado Global’s net loss after tax (NLAT) increased by 22% to $123 million from the year prior.

Coronado Global Resources share price snapshot

The Coronado share price has been an outperformer this year to date, having posted a return of 22% since January 1.

This extends its return in the past 12 months to 48%, well ahead of the broad index’s return of about 25% in the last year.

The post Why the Coronado (ASX:CRN) share price has leapt 30% in a month appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are the major movers at the end of the week?
• Which ASX 300 shares are the biggest winners and losers on Thursday?

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ASX boards are welcoming a new entrant today. Li-S Energy Limited (ASX: LIS) has just completed its initial public offering (IPO) this morning. And boy, what an ASX debut it has been so far. At the time of writing, the Li-S Energy share price has exploded by an incredible 210% from its IPO price of 85 cents. It’s current share price is sitting at $2.62.

This company is being spun-out of PPK Group Limited (ASX: PPK) after weeks of rescheduling. It brings with it a prospect of a new, cheaper, safer and more efficient battery technology called Lithium-Sulphur (Li-S). Lithium-sulphur batteries are a candidate to replace the current dominant lithium-ion battery technology.

According to Li-S Energy, Li-S batteries offer the potential of a far more advanced battery. This is reportedly due to the following:

The theoretical energy density of a lithium-sulphur battery is in the order of five times that of a standard lithium-ion battery… They are also lighter, safer, faster charging, and using more environmentally friendly raw materials.

However, Li-S Energy also notes that this technology has the following drawbacks:

Lithium-sulphur batteries have yet to be mass produced. Historically, the challenge in developing lithium-sulphur batteries has been effectively optimising and stabilising the battery components during charge and discharge cycling.

Lithium-sulphur batteries tended to fail after a low number of recharge cycles, making them of little use for most applications.

Li-S Energy is obviously vying to overcome these barriers and commercialise this exciting technology.

How did the ASX Li-S Energy IPO work?

So according to the company’s ASX release from 24 September, Li-S Energy has raised $34 million through the issuance of 40 million shares. That was at today’s issue price of 85 cents each.

Just a touch over 150 million shares have hit the ASX boards today. But another ~500 million shares will be placed in escrow. These will be restricted from trading until either April 2022 or September 2023.

It will be interesting to see what the Li-S Energy share price does over the next few days after this explosive ASX debut today.

The post Li-S Energy (ASX:LIS) share price explodes 200% higher after ASX IPO appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Peninsula Energy Ltd (ASX: PEN) share price might have hit a near-term top after rallying to a 3-year high of 35 cents on 17 September.

Shares in the uranium explorer have since tumbled 25% to 25 cents.

Why the Peninsula Energy share price is sliding

Uranium prices ease from 9-year highs

Uranium prices skyrocketed in a short period of time, rallying from around US$30/lb in mid-August to above US$50/lb by late September.

During this time, the Peninsula Energy share price surged 180% from 12 cents to 35 cents.

Back in late May, the company initiated a $15 million capital raising to settle its purchase of 300,000 pounds of uranium at a price of US$31.35/lb.

The company believed that acquiring uranium inventory “during a period when there is a focused and continued drive by the United States Government to support and revitalise the domestic uranium industry, is a low-risk strategy that has the potential to deliver considerable upside value for shareholders.”

The recent jump in uranium prices to US$50/lb meant that Peninsula Energy would’ve been sitting on a hefty US$5.5 million profit from its physical uranium acquisition.

The jump in uranium prices has been driven by a Canadian investment fund, Sprott Asset Management and its Physical Uranium Trust.

The uranium fund has an aggressive strategy to purchase physical uranium off the spot market and store it in secured locations.

The fund was regularly purchasing physical uranium up until 17 September, broadly in-line with when uranium prices plateaued.

Uranium prices have since struggled to hold above US$50/lb, sliding to US$44.3/lb according to Trading Economics.

Broader selloff among ASX-listed uranium players

The Peninsula Energy share price isn’t alone in its recent selloff.

The pullback for uranium prices has triggered broad-based selling across all ASX-listed uranium players.

The largest of them all, Paladin Energy Ltd (ASX: PDN) has tumbled 11% in the past week and down 26% from its recent high of $1.12.

Prospective explorers such as Deep Yellow Limited (ASX: DYL) and Boss Energy Ltd (ASX: BOE) have also experienced similar falls.

The post Why the Peninsula Energy (ASX:PEN) share price tumbled 25% from multi-year highs appeared first on The Motley Fool Australia.

More reading

• A sea of red for ASX uranium shares. Is the run over?
• Are ASX uranium shares fully valued?
• Why ASX uranium shares are diving double-digits on Monday
• ASX uranium shares boom to multi-year highs, bull market is just getting started: analyst
• Is there a uranium ETF listed on the ASX?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The 92 Energy Ltd (ASX: 92E) share price has come out of a trading halt today to backtrack during mid-morning. This comes after the uranium exploration company provided an update on its recent equity raise.

At the time of writing, 92 Energy shares are swapping hands for 75 cents, down 1.96%

92 Energy completes placement

One catalyst for today’s fall in the 92 Energy share price could be investor concerns over an impending share dilution.

According to its update, 92 Energy announced it has received firm commitments for its institutional placement to raise $7.15 million before costs. The company highlighted that it had strong support from several high-quality domestic and offshore institutional investors.

The offer will see approximately 9.93 million new ordinary shares issued at a price of 72 cents apiece. This represents a 5.9% discount to the last closing price of 76.5 cents on 23 September (before the trading halt).

92 Energy will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval.

The company will use the proceeds from the capital raise to progress its exploration activity at the Gemini Project. In particular, the funds will be allocated to the following:

• Major drill program at the Gemini Project to follow up the recent uranium discovery at the Gemini Mineralisation Zone (GMZ) in the Athabasca Basin
• Undertake exploration activities at the 92 Energy’s other projects in the Athabasca Basin region
• General working capital.

Settlement of the new shares is expected to occur next Tuesday 5 October.

92 Energy managing director Siobhan Lancaster commented:

This Placement represents a significant milestone for the Company and provides important external validation for the recent discovery of uranium mineralisation at the Company’s 100%-owned Gemini Project in the Athabasca Basin.

We look forward to the upcoming drilling program at Gemini which will assist us to determine the extent of the uranium mineralisation at the Gemini Mineralised Zone.

About the 92 Energy share price

Despite today’s falls, 92 Energy shares have gained around 160% in the past 12 months. However, the company’s share price is around 25% off its all-time high of $1.15 reached in mid-September.

Based on valuation grounds, 92 Energy presides a market capitalisation of around $29.5 million, with almost 40 million shares outstanding.

The post 92 Energy (ASX:92E) share price dips on capital raising update appeared first on The Motley Fool Australia.

More reading

• A sea of red for ASX uranium shares. Is the run over?
• Why the 92 Energy (ASX:92E) share price is frozen today
• 92 Energy (ASX:92E) share price rockets 43% on uranium discovery
• Why ASX uranium shares are diving double-digits on Monday
• ASX uranium shares boom to multi-year highs, bull market is just getting started: analyst

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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