US$3.33M Raised to Drive Uranium Exploration in Athabasca Basin

1. Terra Clean Energy is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Terra Clean Energy has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Terra Clean Energy
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Terra Clean Energy Corp. (TCEC:CSE; TCEFF:OTC; T1KC:FSE) announced the successful completion of a non-brokered private placement, raising approximately US$3.33 million in gross proceeds. This financing effort included the issuance of 14.68 million units at US$0.125 per unit and 11,132,035 flow-through common shares at US$0.135 per share. Each unit consists of one common share and one warrant exercisable at US$0.20 within 36 months. Proceeds from the flow-through share offering will be allocated to Canadian exploration expenses qualifying as flow-through mining expenditures under the Canadian Income Tax Act.

The funds will primarily support exploration and development at Terra's South Falcon East uranium project in the Athabasca Basin, Saskatchewan, Canada, known for hosting the world's highest-grade uranium deposits. A portion of the proceeds will also cover corporate purposes and working capital.

As outlined in the press release, insiders participated in the private placement, purchasing 952,000 units, constituting a related-party transaction under Canadian regulations. The company complied with Multilateral Instrument 61-101 by obtaining shareholder consent to exceed issuance limits, a procedural requirement given the number of new securities issued.

This financing follows Terra's broader efforts to enhance its footprint in the Athabasca Basin, where the company is advancing exploration at the Fraser Lakes B uranium deposit. The property features historical resource estimates of 6.96 million pounds of uranium oxide (U₃O₈) inferred at an average grade of 0.03% U₃O₈.

The Resurgence of Uranium: A Global Shift Toward Nuclear Energy

On November 12, Bloomberg reported the unveiling of the U.S. roadmap to triple nuclear capacity by mid-century. The plan includes adding 35 gigawatts of capacity within a decade through new reactor construction and upgrades to existing facilities, demonstrating a long-term commitment to nuclear energy.

Kazakhstan, the world's largest uranium producer, faced production challenges that added to global supply constraints. According to Ahead of the Herd on November 14, Kazatomprom revised its production target downward for the year, citing sulfuric acid shortages and delays at its Budenovskoye projects. These issues highlight the sector's structural deficit, where reactor demand is projected to outstrip mine supply by 170 million pounds annually.

China is also accelerating its nuclear ambitions. On December 10, OilPrice.com reported that the country could approve 100 new nuclear reactors by 2035, with a realistic target of at least 10 approvals annually. This reflects China's strategy to enhance energy security and reduce its carbon footprint.

On December 13, Excelsior Prosperity reiterated the sector's momentum, describing nuclear energy as "a full-blown renaissance." The report underscored the role of uranium as a critical component in meeting global energy demand while addressing carbon reduction goals.

As nations increasingly turn to nuclear energy, uranium's role as a cornerstone of clean baseload power becomes evident. The current supply constraints and robust demand growth position the sector for sustained development, making it a pivotal element in the global energy transition.

Excelsior Prosperity also noted that the uranium market had faced a supply deficit of 50 million pounds annually in recent years. The firm highlighted that "this massive demand push to source more uranium supply in safe jurisdictions is going to be a big investment theme." The COP28 Declaration, which originally saw 25 countries commit to tripling nuclear capacity by 2050, expanded to 31 countries following COP29 in November.

Key Drivers Behind Terra Clean Energy

As noted in the company's investor presentation, Terra Clean Energy's recent financing strengthens its capacity to accelerate exploration activities, particularly at the South Falcon East project. The Fraser Lakes B uranium deposit remains the focal point, offering potential expansion opportunities based on historical data. The company's 2024 drilling program intersected significant uranium mineralization, including radiometric grades of 0.02% to 0.07% U₃O₈, further confirming resource continuity and grade potential.

Upcoming catalysts include a winter 2024–25 drill program, aiming to expand the deposit footprint and update the resource model. Terra plans to integrate higher-grade results from previous campaigns into an updated National Instrument 43-101-compliant resource estimate. This initiative positions Terra to advance toward a path of higher valuation, supported by additional drilling at unexplored targets along the 25-kilometer Way Lake conductor.

Management emphasizes Terra's strategic advantage in the Athabasca Basin, leveraging its early-stage capital structure and access to significant uranium resources in a market characterized by increasing demand and constrained supply. Terra's leadership team, which boasts extensive experience in uranium exploration, is poised to navigate this critical stage of project development effectively.

By securing funds and advancing critical milestones, Terra Clean Energy is well-positioned to capitalize on the rising global demand for uranium driven by expanding nuclear energy capacity.

Ownership and Share Structure

According to Reuters, management and insiders hold 4.62% of Terra Clean Energy. Of those, Alex Klenman holds the most, with 4.37%.

Strategic Investors hold 12.03%, with Planet Ventures Inc holding the most at 7.40%. The rest is retail.

Terra Clean Energy has a market cap of CA$2.98 million and a 52-week range of CA$0.05 to CA$0.22.