- Azarga Uranium (TSX:AZZ) is set to raise up to C$1.3 million through a non-brokered private placement
- The company will issue 8.7 million units at $0.15 each, comprised of one common share and one share purchase warrant
- Proceeds of the financing will primarily go towards continuing the advancement of Azarga’s Dewey Burdock project
- Azarga Uranium (AZZ) is down 3.03 per cent to $0.16 per share, with a market cap of $29.77 million
Azarga Uranium (TSX:AZZ) is about to raise up to C$1.3 million through a non-brokered private placement.
The company controls ten uranium operations across the US, with a primary focus on developing in-situ recovery uranium projects.
Pursuant to the financing, a total of 8,700,000 units will be issued at a deemed price of $0.15 each. Azarga says that institutional investors are strongly supporting the financing.
Each of these units will contain one common share in Azarga, and one share purchase warrant. The warrants will entitle purchasers to acquire one additional share for $0.20, within three years of financing closing.
Azarga’s President and CEO, Blake Steele, said that the financing will provide the capital needed to progress its various developments.
“The company continues to execute its strategic initiatives, including the advancement of our Dewey Burdock in-situ recovery project in South Dakota, USA towards development.
“We appreciate the continued support of our shareholders. The proceeds from this financing will solidify the company’s balance sheet, and provide the funding required to advance our projects while uranium market fundamentals continue to improve,” he added.
Hopefully, the additional cash will facilitate Dewey Burdock’s progression towards Class III and Class V underground injection control permits. Azarga is hoping to acquire the permits from the Environmental Protection Agency.
Further to this, Azarga will also continue the analysis of historical data at the Gas Hills Project in Wyoming. The company’s goal is to identify additional uranium mineralisation, and to bolster its working capital capabilities.
Shares issued as part of the financing will be subject to a holding period of four months and one day. This is pending regulatory approval from the Toronto Stock Exchange.
Azarga Uranium (AZZ) is currently down 3.03 per cent to $0.16 per share at 11:25am EST.