Oversubscribed Terra Uranium shares rally 70% on ASX debut

Terra Uranium (ASX: T92) shares experienced a massive re-rate as it debuted on the ASX at 11:00 am AEST, rallying 70% to 34 cents.

Terra was seeking to raise $6m at 20 cents per share but heightened investor demand for renewable-related plays witnessed the company pocket an additional $1.5m to support its exploration endeavors.

Led by Alligator Energy (ASX: AGE) founder Andrew Vigar, Terra operates three 100% owned projects in the premier Athabasca Basin, Canada. The region hosts some of the world's largest and highest grade uranium deposits.

"We are targeting greenfield discovery and brownfield developments close to existing production infrastructure to play a role in a clean carbon free economy," said Vigar.

Projects at a glance

The HawkRock Project: Early-stage uranium exploration project with limited historical exploration. Existing geophysics have been re-processed and resulting anomalies have been used to outline several highly prospective target areas.

The Parker Lake Project: Early-stage uranium exploration project

The Pasfield Lake Project: Early-stage uranium project. Has multiple historic uranium geochemistry anomalies of interest.

Terra views the project area as 'poorly explored' and believes a 'large uranium deposit will potentially have developed a coherent and large-scale uranium geochemical halo'.

"The Company intends to utilise reverse circulation drilling and geochemical sampling to depths 200 m below surface to test for uranium geochemical halos," the prospectus said.

Roadmap to drilling

Terra plans to progress early-stage exploration activities such as the review of historical geophysics, geological fieldwork and airborne surveys to define future high confidence diamond drill targets.

The early stage activities are expected to commence this year, in the lead up to potential maiden drilling in 2023.