Cauldron Energy (ASX: CXU) has announced a fully underwritten renounceable entitlement offer to raise approximately $1.949 million. The offer, priced at $0.006 per share which represents a 25% discount to the 7-day VWAP, is fully underwritten by major shareholder Parle Investments Pty Ltd, signaling strong support for the company’s strategic direction. No fees are payable to the underwriter.
The funds raised will primarily advance the Yanrey Uranium Project, located in Western Australia. The project covers approximately 1,327 square kilometers and hosts multiple prospective paleochannel systems. Recent acquisitions from Wyloo Metals Ltd have expanded the project’s high-priority exploration areas. The Yanrey Uranium Province contains at least 85 Mlbs of uranium-oxide across five known deposits.
Cauldron’s CEO, Jonathan Fisher, expressed gratitude for Parle Investments’ support, emphasizing the funding’s importance in advancing the Yanrey Uranium project amid growing global uranium demand and anticipation of a potential reversal of the uranium mining ban in Western Australia. Fisher highlighted the “undeniable momentum” in the global uranium market, driven by a projected shortage and a global nuclear renaissance, noting investors’ increasing recognition of the uranium sector’s potential.
The Entitlement Offer allows eligible shareholders (those in Australia, New Zealand, and Hong Kong) to subscribe for two new shares for every nine shares held at the record date. Eligible shareholders also have the opportunity to apply for any shortfall from the Entitlement Offer, prior to the underwriter. The offer is renounceable, meaning rights to acquire new shares are tradeable on the ASX. The indicative timetable includes an ex-date and record date both on May 29, 2025, with trading of rights ceasing on June 6, 2025, and quotation of shares expected around June 23, 2025.
Cauldron’s Yanrey Project includes the Bennet Well Uranium deposit (30.9 Mlb of uranium-oxide) and the Manyingee South Uranium deposit (11.1 Mlbs of uranium-oxide), positioning the company to become a reliable uranium producer should the Western Australian government lift the current mining ban.
