enCore Energy Corp revealed that it has closed its previously announced bought deal prospectus offering to raise aggregate gross proceeds of $30 million.
The Corpus Christi, Texas-based diversified domestic uranium developer said it plans to use the funds as working capital and to advance its material properties, acquire new properties, undertake plant upgrades, maintenance, and refurbishment.
enCore sold an aggregate of 19.60 million units, which included the exercise in full of the underwriters' over-allotment option, at a price of $1.53 per unit.
Each unit comprised of one common share and one-half of one share purchase warrant. Each warrant entitles the holder to buy one share at an exercise price of $2 until March 25, 2024, subject to the terms of a warrant indenture dated March 25, 2022, between the company and Computershare Trust Company of Canada as warrant agent.
encore said the offering was led by Clarus Securities Inc as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters including PI Financial Corp and Red Cloud Securities Inc.
The underwriters received a cash commission of $1,61 million for their services and were issued an aggregate of 1.05 million compensation options. Each compensation option is exercisable to acquire one share at an exercise price of $1.53 per share until March 25, 2024.
The units were offered by way of a short form prospectus dated March 22, 2022.
Separately, in connection with the filing of the prospectus, the company said it filed an amended technical report regarding the company's Crownpoint and Hosta Butte Uranium project, which is available under enCore Energy’s profile on www.SEDAR.com.
enCore holds a 100% interest in 113,000 acres of private mineral rights, including the Crownpoint and Hosta Butte uranium deposits in New Mexico. The company is focused on becoming a large uranium producer from its licensed and past-producing South Texas Rosita processing plant by 2023. Meanwhile, the company’s newly acquired Dewey Burdock project in South Dakota and the Wyoming Gas Hills project offer mid-term production opportunities, while significant New Mexico uranium resource endowments offer long-term opportunities for the uranium developer.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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