Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) has closed the second and final tranche of the fully marketed private placement first announced on June 6, according to a statement.
In the second tranche, the company sold 3,177,116 flow-through units at a price of C$0.13 each for gross proceeds of C$413,025. Combined, the private placement sold 7,306,900 units for aggregate gross proceeds of C$3,565,344.
Each unit consists of one common share and one half of one a share purchase warrant, and each flow-through unit consists of one common share to be issued as a “flow-through share” and one half warrant.
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Each whole warrant entitles the holder to purchase a common share at a price of $C0.17 for a period of two years.
Net proceeds from the offering will be used for exploration of the Davidson River project and for working capital purposes, the company said. Meanwhile, proceeds from the sale of flow-through shares will be used to incur Canadian exploration expenses and flow-through mining expenditures as defined in the Income Tax Act (Canada).
Such proceeds will be renounced to the subscribers with an effective date of no later than December 31, 2022, in the aggregate amount of no less than the total amount of gross proceeds raised from the issue of flow-through shares, Standard Uranium noted.
The president of the company purchased 100,000 flow-through units, the company added.
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.
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