GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) said on Thursday it is increasing its previously announced private placement financing to up to C$8 million, citing strong investor interest led by a strategic group from Zambia keen to see the company’s Muntanga uranium project move into production.
The company now plans to issue up to 160 million units at a price of C$0.05 per unit, up from its earlier plan to issue 150 million units for C$7.5 million, it said in a statement.
GoviEx said it has already received signed subscription agreements exceeding C$7 million.
Each unit will consist of one Class A common share and one warrant, entitling the holder to purchase an additional share at the US dollar equivalent of C$0.07 for a period of 24 months after the deal closes.
Proceeds from the offering will go toward exploration and development of GoviEx’s assets, including the Muntanga project in Zambia, as well as for working capital and general corporate purposes.
Closing is expected on or around May 5.