GoviEx Uranium Inc (CVE:GXU) (OTCMKTS:GVXXF) announced on Friday that it has completed a non-brokered private placement to raise gross proceeds of C$8 million to fund the exploration and development of uranium properties in Africa and working capital.
The Vancouver, British Columbia-based mineral resource company said it had issued 32 million units at a price of C$0.25 per unit. Each unit consists of one Class A common share and one transferable share purchase warrant. Each warrant will entitle the holder to acquire on exercise one a warrant share until January 21, 2023, at a price of US$0.30 per warrant share, subject to applicable adjustments.
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GoviEx Uranium said that all securities issued under the private placement are subject to a four-month hold period and may not be traded before May 22, 2021.
“The net proceeds from the private placement will be used to fund continued exploration and development activities on the company's assets, working capital and for general corporate purposes,” the company said in a statement.
The group paid a cash finder's fees of around C$433,391 in relation to the private placement, which remains subject to the final exchange acceptance.
GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa. It is trying to become a significant uranium producer through the exploration and development of its flagship mine-permitted Madaouela Project in Niger, its mine-permitted Mutanga Project in Zambia, and its multi-element Falea Project in Mali.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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