GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) said it has signed an agreement with a syndicate of underwriters led by Sprott Capital Partners for a bought deal private placement financing of 22,750,000 units of the company at a price of C$0.22 each, raising gross proceeds of approximately C$5 million.
Each unit will consist of one Class A common share of the company and one-half of one common share purchase warrant, with each warrant entitling the holder to purchase one common share at the US dollar equivalent exercise price of C$0.33 for a period of three years from the date of closing.
In addition, the company has granted the underwriters an option to purchase an additional 15% of the number of the units issued pursuant to the offering, on the same terms to cover over-allotments and for market stabilization purposes.
READ: GoviEx Uranium reports positive feasibility study results for its Madaouela uranium project
The net proceeds from the offering will be used for exploration and general corporate and working capital purposes.
The offering is expected to close on or about October 20, 2022, and is subject to certain conditions including, but not limited to, the receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange.
All securities issued under the offering will have a hold period of four months and one day.
Mitigating long-term impact
Separately, GoviEx said it has released its first Environmental, Social and Governance (ESG) report, detailing its performance for the first six months of the year. The report showcases GoviEx's continued commitment to mitigating long-term impacts to the environment while progressing the interests of its stakeholders.
"ESG has always been an important part of how we operate and we are pleased to continue to build a more sustainable future for our company. We are committed to making a positive impact for our stakeholders and to harnessing technology to minimize our environmental impact,” GoviEx CEO Daniel Major said in a statement.
“We remain focused on doing business ethically, and providing a safe and welcoming work environment for our employees. I am confident that our past, present, and future commitment towards ESG makes us a stronger company for all current and potential employees, investors, lenders, off takers and the communities where we operate," he added.
The report has been published on GoviEx's website.
GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa. Its principal objective is to become a significant uranium producer through the continued exploration and development of its flagship mine-permitted Madaouela project in Niger, its mine-permitted Mutanga project in Zambia, and its multi-element Falea project in Mali.
Contact the author at jon.hopkins@proactiveinvestors.com