Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) said it has entered into a letter agreement with Red Cloud Securities Inc to act as lead agent on behalf of a syndicate of agents that includes Canaccord Genuity (TSX:CF, LSE:CF) Corp, in connection with a fully marketed, private placement for gross proceeds of up to C$3.5 million.
The net proceeds raised from the offering will be used for the exploration of the company's Davidson River Project and for working capital purposes.
The placement will see the sale of any combination of units of the company at a price of C$0.11 per unit and flow-through units (FT unit) at a price of C$0.13 per FT unit.
Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each FT unit will consist of one common share of the company to be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one-half of one warrant.
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Each whole warrant shall entitle the holder to purchase one common share of the company at a price of C$0.17 at any time on or before that date which is 24 months after the closing date of the offering.
The agents will have an option, exercisable in full or in part up to 48 hours prior to the closing of the offering, to sell up to an additional C$1,000,000 in any combination of units and FT units at their respective offering price.
Proceeds from the sale of FT Shares will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act and "flow through mining expenditures" as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT shares.
The offering is scheduled to close on or around June 27, 2022, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
All securities issued in connection with the offering will have a hold period of four months and one day from the closing date.
The securities being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a US person.
Standard Uranium is a mineral resource exploration company based in Vancouver, British Columbia. Since its establishment, the company has focused on the identification and development of prospective exploration stage uranium projects in the Athabasca Basin in Saskatchewan, Canada.
Standard Uranium's Davidson River Project, in the southwest part of the Athabasca Basin, Saskatchewan, is comprised of 21 mineral claims over 25,886 hectares. Davidson River is highly prospective for basement-hosted uranium deposits yet remains relatively untested by drilling despite its location along trend from recent high-grade uranium discoveries.
Contact the author at jon.hopkins@proactiveinvestors.com