- GoviEx Uranium (GXU) has signed a revised agreement with Sprott Capital Partners to increase the size of the previously-announced bought-deal private placement financing
- This was necessitated by strong investor demand
- The underwriters have agreed to purchase 45,500,000 units of the company at a price of C$0.22 per unit for an aggregate purchase price of C$10,010,000
- GoviEx Uranium Inc. is a mineral resource company focused on the exploration and development of uranium properties in Africa
- GoviEx Uranium Inc. was unchanged at $0.23 at 1:51 PM ET
GoviEx Uranium (GXU) has signed an agreement with Sprott Capital Partners to increase the size of a private placement financing.
The underwriters have agreed to purchase 45,500,000 units at a price of C$0.22 per unit for an aggregate purchase price of C$10,010,000.
The other terms of the offering, including the over-allotment option, remain unchanged from the company’s earlier news release on that.
The funds raised will enable the continued development of GoviEx’s projects, bringing the company closer to its target of becoming a uranium producer by 2025, subject to project financing.
Following the successful release of the feasibility study results for its Madaouela project, the company will now focus on progressing offtake and debt financing options.
The funds will also be used to continue the development of the Muntanga project in Zambia, where GoviEx aims to complete a feasibility study by the end of 2023, and the continued exploration of its earlier stage Falea project in Mali.
Each unit will consist of one Class A common share of the company and one-half of one common share purchase warrant.
Each warrant will entitle the holder to purchase one common share at the US$ equivalent exercise price of C$0.33 (FX rate to be set based on the Bank of Canada daily exchange rate for US$ one business day prior to the closing date) for a period of 3.0 years (36 months) following the closing of the offering.
The net proceeds from the offering will be used by the corporation for exploration and general corporate and working capital purposes.
The offering is expected to close on or about October 20, 2022.
GoviEx Uranium Inc. is a mineral resource company focused on exploring and developing uranium properties in Africa.
GoviEx Uranium Inc. was unchanged at $0.23 at 1:51 PM ET.
