Standard Uranium (TSX-V:STND) Ltd has closed its brokered private placement for gross proceeds of C$5 million, which included the full exercise of the over-allotment option.
Under the offering, the company said it sold 8,296,833 units (Unit) at C$0.24 each and 11,353,812 flow-through units (FT Unit), and collectively with the offered securities, at C$0.265 per FT Unit.
Standard Uranium said the net proceeds raised from the sale of Units will be used for the exploration and development of the company’s Davidson River project and for working capital purposes.
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The proceeds from the sale of FT Shares will be used to incur "Canadian exploration expenses" as defined in the Income Tax Act as well as "flow through mining expenditures.”
The Vancouver-based company said such proceeds will be renounced to the subscribers with an effective date no later than December 31, 2021, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.
As part of the offering, each Unit consists of one common share and one half of one common share purchase warrant. Each FT Unit consists of one common share to be issued as a “flow-through share” within the meaning of the Income Tax Act and one half of one warrant. Each whole warrant entitles the holder to purchase one common share for C$0.36 each at any time on or before August 10, 2024.
Red Cloud Securities Inc acted as lead agent and sole bookrunner on behalf of a syndicate of agents that included Canaccord Genuity (TSX:CF, LSE:CF) Corp and Echelon Wealth Partners Inc.
Under the offering, the company said it paid the agents total cash commissions of C$237,757 and issued 927,341 warrants. Each warrant is exercisable to acquire one Unit at a price of C$0.24 at any time on or before August 10, 2024. In addition, the agents received an advisory fee related to the offering of a cash amount of C$33,855 and 128,659 warrants.
Also, Standard Uranium said the offering included a subscription from a company director and officer for 900,000 Units.
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