ENERGY MINERALS

Alligator secures Traxys' support for Samphire

Deal with uranium minnow delivers marketing services and development prepayment option

 Alligator has found a friend to support Samphire

Alligator has found a friend to support Samphire

Traxys will provide marketing services for future uranium production, long-term offtake contracting, development financing options, and assistance in uranium project acquisition opportunities.
 
Traxys trades up to 15 million pounds of uranium each year, and under an agency agreement will help support a plan to accelerate Samphire's development, located 20km southwest of Whyalla in the Gawler Craton.
 
Alligator CEO Greg Hall claimed the company now had one of the "most capable and experienced physical uranium investment ‘partnerships' on the ASX", and would be able to maximise future product pricing and project revenues by selling yellowcake to nuclear facilities.
 
Traxys can deliver a structured pre-production payment of up to US$15 million as Alligator advances to development.
 
As Alligator's exclusive agent for at least an initial five-year period, Traxys will be remunerated with payments on both spot and long-term sales on market standard terms. 
 
Alligator will make an initial two-year advisory payment by issuing $250,000 worth of shares to the trader to help ensure they are fully aligned. Future annual payments of $125,000 can be made in cash or shares.
 
Alligator is preparing to drill at the 47Mlb Samphire project, following a successful, expanded high-resolution ground magnetics trial over the Blackbush deposit, while a delayed airborne electromagnetic survey is being completed over the Big Lake project, in SA's Cooper Basin.
 
The survey is the first step in Alligator earning up to 100% of the exploration licence, which is considered prospective for an in-situ recovery project, within Santos' Moomba gas field.
 
The company has also more than doubled its tenure in the Northern Territory's Nabarlek North tenement package to 1130sq.km. 
 
Alligator started the quarter with A$2.1 million. 
 
Alligator shares were last traded at 2c, valuing the company at $47 million. The stock was priced at 0.4c 12 months ago.  

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