GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) said it has completed its previously announced bought deal prospectus offering, raising gross proceeds of about C$13.8 million by issuing 86,250,000 company units at a price of C$0.16 per unit.
The mineral resource company said it anticipates using the proceeds from the offering towards, among other things, exploration, engineering and general corporate and working capital purposes, including the feasibility study for the Muntanga project in Zambia and development of the company's financing options for the Madaouela project in Niger.
Each unit was comprised of one company common share plus one common share purchase warrant, with each warrant entitling the holder to purchase one GoviEx common share at C$0.21 for a period of 36 months following the closing date of the offering.
GoviEx also noted that its director and executive chairman Govind Friedland and director Eric Krafft both acquired 8.5 million units of the offering.
The company added that it paid a cash commission of C$624,360 and issued 3,152,250 compensation warrants to the underwriter, with each compensation warrant being exercisable into a GoviEx unit at the offering price until December 22, 2025.
GoviEx Uranium 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.