- NxGold (NXN) has raised C$3.2 million in a private placement as the company prepares for a name change to International Consolidated Uranium Inc.
- Under the terms of the placement, NxGold issued 6.4 million units at a price of $0.50 each, comprised of one common share and half of one common share purchase warrant
- Each whole warrant will be exercisable at a price of $0.75 per share for a period of three years
- The name change was proposed on September 9 this year, and is expected to take effect on Monday, October 5
- NxGold (NXN) is currently up 5.17 per cent to 61 cents per share at 11:55am EDT
NxGold (NXN) has raised C$3.2 million in a private placement as it prepares to change its name to International Consolidated Uranium Inc.
Under the terms of the placement, which was announced on September 9 and upsized on September 11 due to significant investor demand, the Vancouver-based company issued a total of 6.4 million units at a price of $0.50 each.
These units are comprised of one common share in NxGold and half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.75, exercisable over a period of three years from the date of issuance.
Red Cloud Securities acted as a finder for the offering, and received an advisory fee of $56,000 along with 112,000 compensation warrants, exercisable at a price of $0.50 per share for a period of three years.
Philip Williams, President and CEO of NxGold, said the support for the financing from some major players in the uranium industry is a tremendous endorsement for the company.
“It’s with great pleasure that we welcome dedicated uranium funds Segra Capital and Sachem Cove, as well as several other strategic and institutional investors from around the globe to the company.
“The company is now well-positioned, with over $5.5 million in the cash and investments, to execute on our plan to become a leading consolidator of uranium assets worldwide,” he added.
NxGold announced its proposed name change in conjunction with the placement on September 9, and is expected to take effect on Monday, October 5.
NxGold (NXN) is currently up 5.17 per cent and is trading at 61 cents per share at 11:55am EDT.