Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) said it has determined, given the current strength in the global uranium sector, and uranium's increasing importance as a green energy source, that it will conduct a non-brokered private placement to raise gross proceeds of up to C$3.5 million.
The company said the private placement will be of any combination of units at a price of C$0.11 each, and flow-through (FT) units at a price of C$0.13 per FT unit.
The net proceeds raised from the offering will be used for the exploration of the company's projects and for working capital purposes. Proceeds from the sale of FT units 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 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 units.
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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. 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.
Standard Uranium said Red Cloud Securities Inc has agreed to act as a finder for the company in connection with the offering. The company will pay finders' fees to eligible parties who have assisted in introducing subscribers to the offering.
All securities issued in connection with the offering will have a hold period of four months and one day from the closing date. Closing of the offering remains subject to the approval of the TSX Venture Exchange.
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