GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) said on Monday it had closed a C$10.5 million upsized private placement, anchored by a privately held Zambian investment group, strengthening its development plans for the Muntanga uranium project in Zambia.
The financing saw the sale of 209.4 million units at C$0.05 each, with each unit comprising one common share and a warrant exercisable at US$0.051 until May 2027.
The unnamed Zambian investor group, which holds interests in agriculture, natural resources, power, and financial services, will now hold a material equity stake in GoviEx.
“This successful financing sends a clear signal: the Muntanga project is gaining serious momentum at a time when uranium fundamentals are surging,” said executive chairman Govind Friedland.
“The backing from our strategic investor group in Zambia—right where the project is located—reinforces the strength of our asset and reflects a shared conviction in Muntanga's potential to become a cornerstone supplier in the global nuclear fuel market.”
Insiders of the company acquired 50.6 million units, or 24.16% of the offering.
GoviEx plans to use the proceeds to fund further exploration and development of its assets, working capital, and general corporate purposes.