- enCore Energy (EU) has raised C$4.8 million in a private placement to fund exploration work at its properties in the southwest United States
- The company issued 12 million units at a price C$0.40 each, consisting of one common share and one-half of a common share purchase warrant
- Each warrant will be exercisable at a price of $0.60 per share for a period of 36 months
- The proceeds will be used to fund exploration and development activities at the company’s uranium projects, located predominantly in Arizona and New Mexico
- enCore Energy (EU) is currently steady at a price of $0.41 per share, as of 1:54pm EDT
enCore Energy (EU) has raised C$4.8 million in a private placement to fund exploration work at its properties in the southwest United States.
Under the terms of the placement, which was announced on September 18, the Toronto-based uranium company issued a total of 12 million units at a price of $0.40 each. These units are comprised of one common share in enCore Energy and one-half of a common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional share at a price of $0.60, exercisable over a period of 36 months from the date of issuance.
However, should the company’s shares trade at or above a price of $0.90 for a period of five consecutive trading days on the TSX Venture Exchange, the expiry date of the warrants may be brought forward.
Clarus Securities, PowerOne Capital Markets and Red Cloud Securities acted as the agents for 5,737,500 of the units sold, and received a total of $137,700 in cash as well as 344,250 for their services. These warrants will be exercisable at a price of $0.40 per share over a period of 36 months.
Notably, all of enCore Energy’s directors participated in the offering, purchasing an aggregate of 457,500 for a total of $183,000.
The proceeds will be used to support exploration and development activities at the company’s uranium projects, which are located predominantly in Arizona and New Mexico. A portion of the funds may also be used for future acquisitions and for general corporate purposes.
The financing comes hot on the heels of a management reshuffle last month, in which Paul Goranson was appointed CEO, effective October 1, 2020, replacing Dennis Stover who will transition to the role of Chief Technical Officer.
enCore Energy (EU) is currently steady at a price of $0.41 per share, as of 1:54pm EDT.