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Boss Energy has successfully raised $205 million for future uranium exploration.

The offer comprised the issue of about 51.9 million new shares being issued at $3.95 per share. The proceeds will go toward Boss’ acquisition of 30 per cent of enCore Energy’s Alta Mesa uranium project in south Texas for $US70 million.

Boss will pay $US60 million in cash, while investing $US10 million in enCore’s shares. It will also loan enCore up to 200,000 pounds of yellowcake for commercial use over the next year.

“In this 70–30 partnership with Boss Energy, a $1.5 billion market capitalisation emerging ISR (in-situ recovery) producer, enCore will continue as manager of the Alta Mesa joint venture,” enCore executive chair William M Sheriff said.

“This accretive transaction provides us with the means to expand our future production profile on an aggressively expedited timeline.”

The transaction is expected to be completed in February 2024.

Boss’ placement will also fund production and resource growth initiatives for the Honeymoon uranium project in South Australia, which recently generated production-grade uranium during the pre-flushing of the start-up wells.

“It is a very exciting time for Boss Energy as it moves to become a multi-mine ISR uranium producer by the first half of 2024,” Boss managing director Duncan Craib said.

“We are extremely pleased with the outcome of the capital raising and we are grateful for the support of our existing and new shareholders. The proceeds will be used to drive Boss Energy’s multi-pronged growth strategy, with significant exploration spend and work towards expanding production capacity at Honeymoon.”

Boss also aims to raise up to an extra $10 million through a share purchase plan that will enable eligible its shareholders to apply for the new shares at the same price as the offer. The new shares issued under the offer and share purchase plan will rank equally.