Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) revealed it had upsized its previously announced placing to C$4.5 million from C$3.5 million due to strong investor interest.
The company has now closed the first tranche, it added, in which it sold around 9.12 million units at C$0.11 each and around 8.94 million flow-through units at C$0.13 each for total gross proceeds of around C$2.1 million.
"We would like to thank new and existing shareholders for supporting the company while we continue exploration on our flagship Davidson River project and our other projects in the Athabasca Basin," said Jon Bey, CEO of Standard Uranium, in a statement.
"The close of the first tranche of the offering gives the company sufficient working and exploration capital to execute on our near-term goals."
READ: Standard Uranium plans to conduct a non-brokered private placement to raise gross proceeds of up to C$3.5M given the current strength of the global uranium sector
The company boss added: "The continued strength of the uranium sector globally, and growing focus on nuclear energy as a reliable, environmentally friendly energy source puts Standard Uranium in an excellent position as we focus on raising additional funds with the second tranche of the offering."
Each unit consists of one company share and one-half of a share purchase warrant.
Each flow-through unit consists of one company share to be issued as a "flow-through share" and one-half of one warrant. Each whole warrant entitles the holder to buy one company share for C$0.17 at any time on or before September 29, 2024.
The net proceeds raised will be used for the exploration of the company's projects and for working capital, said the company.
The second and final tranche is scheduled to close in the short term, it added.
The company's Davidson River project sits in the southwest of the Athabasca Basin, Saskatchewan and comprises 21 claims over 25,886 hectares.
The property 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, the company says.
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