Elevate Uranium Faces Execution Risk as U-pgrade™ Demonstration Plant Targets Late 2025

Capital Raising Fuels Next Phase of Growth

Elevate Uranium Ltd (ASX:EL8) has successfully completed a $25 million capital raising, positioning the company to accelerate development of its uranium projects in Namibia and Australia. The placement attracted domestic and offshore institutional investors, including Paradice Investment Management, which now holds a 9.9% stake, joining Sprott Inc as a substantial shareholder. This infusion of capital underpins Elevate’s strategy to demonstrate its proprietary U-pgrade™ beneficiation process and expand its resource footprint.

Advancing the U-pgrade™ Demonstration Plant

Central to Elevate’s growth plans is the U-pgrade™ demonstration plant, designed to validate the company’s patented beneficiation technology at scale. The plant, currently under design and construction in Perth, is slated for shipment and operation in Namibia by late 2025. Bench-scale metallurgical testwork using six tonnes of uranium ore from the Koppies deposit is informing the plant’s design. This process promises to concentrate uranium ore significantly, potentially halving capital and operating costs compared to conventional methods.

Resource Upgrades and Exploration Momentum

The Koppies Uranium Project has seen a substantial upgrade, with 78% of its 66.1 million pounds of U3O8 now classified as Indicated, enhancing confidence in its development potential. The maiden inferred resource at the nearby Hirabeb deposit adds 10.2 million pounds, while ongoing drilling at Namib IV aims to delineate a maiden resource in 2025. Across the portfolio, a total of 815 holes covering 23,581 metres were drilled in the quarter, including significant programs at Capri and Marenica projects, both targeting maiden resource estimates next year.

Strategic Positioning in Namibia and Australia

Elevate’s extensive tenement holdings in Namibia’s Erongo uranium province provide a strategic advantage, with projects clustered to leverage infrastructure and operational synergies. The company’s Australian assets, including joint ventures like Bigrlyi, complement its Namibian portfolio, offering exposure to high-grade uranium resources. Recent high-grade drilling results at Bigrlyi underscore the potential for resource growth in Australia.

Financial and Operational Outlook

With $26.6 million in cash at quarter-end and funded for nearly seven quarters of operations, Elevate is well-capitalized to execute its exploration and development programs. The company is progressing a scoping study for Koppies and plans approximately 100,000 metres of drilling across its tenements, aiming to expand and upgrade resources further. Payments to related parties were disclosed at $151,565, consistent with executive and director remuneration.

Elevate Uranium’s focus on demonstrating the U-pgrade™ process at scale, combined with aggressive exploration, positions it as a compelling player in the uranium sector amid growing demand for carbon-free energy sources.