GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) announced it has entered an amended agreement with Eight Capital under which Eight Capital will now buy 75 million units of the company on a “bought deal” basis at $0.16 each for gross proceeds of $12 million.
The bought deal offering was increased from 50 million units for gross proceeds of $8 million.
GoviEx said each unit will include one common share and one purchase warrant, with each warrant entitling the holder to buy an additional share at an exercise price equal to the US dollar equivalent of $0.21 for 36 months from the closing date of the offering. The exchange rate will be the Bank of Canada’s daily exchange rate one day before the closing date.
The company has also agreed to grant the underwriters of the offering an over-allotment option to buy up to 15% of the units at the issue price for up to 30 days following the closing of the offering, which is expected to occur on or about December 22, 2023.
GoviEx said it plans to use the net proceeds of the offering for exploration, engineering and general corporate and working capital purposes.
The offering is subject to regulatory approvals, including the condition approval from the TSX Venture Exchange.
GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa.
The company’s principal objective is to become a significant uranium producer through the continued exploration and development of its mine-permitted Mutanga project in Zambia and its mine-permitted Madaouela project in Niger.
~Updated to reflect increase in bought deal offering to $12 million from $8 million~
Contact the author at stephen.gunnion@proactiveinvestors.com