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Australian Stock Exchange-listed uranium development company focused on advancing a portfolio of uranium assets in Africa, Atomic Eagle’s largest shareholder, Menel Energy and Resources has signed a binding commitment to exercise an aggregate of 35,149,113 options at an exercise price of $0.31 per option.
Under the commitment, Menel has irrevocably agreed to exercise its options and provide the corresponding exercise proceeds to the Company approximately six months prior to the options’ expiry date of 5 May 2027.
The Company believes the commitment represents a significant endorsement of its strategy and progress to date.
As the Company’ largest shareholder, Menel has maintained a close association with the Company throughout its transformation and has a detailed understanding of its asset portfolio, growth strategy and business objectives.
Based on the Company’s current unaudited cash position of approximately $12.1 million, receipt of the committed option exercise proceeds would increase available cash to approximately $23.0 million, providing sufficient funding capacity to execute the Company’s current growth strategy through 2028 without requiring near-term equity financing.
“The commitment leaves the Company fully funded to accelerate delivery of our objectives across both our exciting uranium projects in Zambia and Niger. This decision is a powerful vote of confidence from a shareholder with a long history alongside our projects and allows us to pursue both Zambia and Niger in parallel, rather than sequentially,” said Atomic Eagle Chief Executive Officer, Phil Hoskins.
Following the exercise of these options, approximately 17.9 million options in the same option category remain unexercised with an exercise price of $0.31 per option and an expiry date of 5 May 2027. Full exercise of these remaining options would provide a further approximately $5.5 million in funding proceeds to the Company.
The majority of these remaining options are held by a small number of existing long-term shareholders.
