Uranium American Resources Inc. (OTC:TNGL) said it has secured a $3.5 million equity investment from a US institutional investor to complete its acquisition of JAG Minerals Pty Ltd.
The financing, structured as a unit transaction, was priced at $0.06 per share—representing a significant premium to UAR’s current share price—and includes one warrant per share allowing the investor to purchase additional shares at $0.10 for up to 48 months.
The deal will allow UAR to acquire 100% of the issued shares of Australia-based JAG Minerals, which in turn owns 100% of JAG Minerals US Inc.
“This financing is a key milestone in completing our JAG transaction, which will be completed very shortly,” said UAR CEO William Hunter. “In addition, we will also be completing the reverse split which will significantly reduce the amount of shares outstanding.”
Including this latest round, UAR said it has raised more than $4 million in the past year to advance and finalize the acquisition.
Hunter added that the company expects to move forward “very quickly” following the close of the deal and reverse stock split.