ENRG Elements Raises $1.6M, Relinquishes Canadian Lithium Licenses

Strategic Capital Raise and Cost Management

ENRG Elements Limited (ASX, EEL) has successfully closed a renounceable entitlement offer, raising approximately $1.6 million before costs. The offer, priced at 0.1 cents per share, included free attaching options exercisable at 0.2 cents over four years. This capital injection aims to fund the company’s ongoing strategic review, exploration activities, and potential acquisitions, particularly focusing on gold projects in Central Asia.

Alongside the capital raise, ENRG has implemented significant cost reductions, reflecting a prudent approach to cash management. With a cash balance of around $1.7 million at the end of September 2025, the company is positioning itself to maintain operational flexibility while meeting minimum tenement expenditures and corporate compliance.

Portfolio Rationalisation, Exiting Canadian Lithium

In a notable shift, ENRG has relinquished its three mineral exploration licenses in Manitoba, Canada, covering Handle Lake, Split Lake, and Unwin Lake. The decision follows a strategic assessment that these greenfield, remote lithium targets do not align with the company’s value creation objectives. The relinquishment reduces ongoing holding costs and allows management to focus resources on higher-potential assets.

Focus on Uranium and Copper Assets

ENRG retains 100% ownership of the Agadez Uranium Project in Niger, a cornerstone asset with an inferred mineral resource of approximately 21.5 million pounds of contained uranium oxide (U3O8) at 315 ppm. The project’s exploration permits were renewed for three years through October 2027 without relinquishment, underscoring the company’s commitment to this world-class uranium asset. While no new exploration progress was reported this quarter, the board continues to evaluate options to maximise value, including potential divestment or further exploration.

In Botswana, ENRG holds a 10% interest in the Ghanzi West Copper-Silver Project and a 25% stake in the Virgo Project, both situated in the prolific Kalahari Copper Belt. These projects benefit from proximity to significant copper discoveries and operate within a stable, mining-friendly jurisdiction. Updates from joint venture partners indicate ongoing exploration activity, although ENRG’s direct involvement remains limited.

Looking Ahead, New Opportunities and Market Positioning

The company is actively assessing new business opportunities, particularly in gold exploration within Central Asia, signaling a strategic diversification beyond its uranium and copper focus. The partial underwriting of the entitlement offer by Mahe Capital Pty Ltd provides additional confidence in the company’s capital strategy. Investors will be watching how ENRG balances exploration expenditure with its financial runway and how it leverages its portfolio to deliver shareholder value.