- First Uranium Resources Ltd. (URNM) signs a binding letter of intent to acquire all the shares of Southwind Corporation and announces a $6 million private placement
- First Uranium can acquire 100 per cent of the Southwind by issuing up to 20 million of its shares
- The company has announced a $6 million private placement of subscription receipts
- The placement is anticipated to close on or about March 31, 2022
- The proceeds will be used for exploration and development work on First Uranium’s Arkansas Project
- First Uranium Resources Ltd. (URNM) is up 8.75 per cent trading at $0.43 per share as of 1:05 p.m. EST
First Uranium Resources (URNM) has signed a binding letter of intent to acquire Southwind Corporation and announced a $6 million private placement.
Southwind Corporation owns a high-grade heavy rare earth development project. The project is near producing rock quarries and is near rail export and additional transport infrastructure.
First Uranium will have the option to acquire 100 per cent of the Southwind shares by issuing up to 20 million of its shares as follows:
- 6.6 million shares when entering a definitive agreement
- 6.6 million shares after completing a technical report of the assets with a minimum recommended work program of at least US$2 million
- 6.6 million shares after completing development and purchase agreements with the property owners
In addition to the share payments, First Uranium is obligated to incur minimum work expenditures of at least US$3 million within the first year from the completion of the technical report.
First Uranium will pay finder’s fees of up to two million shares when the option is exercised.
The company is also entering a private placement of subscription receipts for up to $6 million. 17.1 million subscription receipts will be issued for $0.35 per receipt.
Each subscription receipt is convertible into one common share and one half of a share purchase warrant. Each whole warrant is exercisable for one common share at a price of $0.50 per share.
The placement is anticipated to close on or about March 31, 2022.
The proceeds of the private placement will be used for the exploration and development work on First Uranium’s Arkansas Project.
First Uranium Resources Ltd. (URNM) is up 8.75 per cent trading at $0.43 per share as of 1:05 p.m. EST.