GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) said it has doubled the size of a bought deal private placement financing to around C$10 million following strong investor demand.
The revised deal agreed with Sprott Capital Partners, on behalf of a syndicate of underwriters, will involve the underwriters buying 45.5 million units of the company at a price of C$0.22 per unit.
The other terms of the offering, including the over-allotment option, remain unchanged from the company's news release two days ago when the company announced plans to raise C$5 million.
READ: GoviEx Uranium announces C$5M bought deal private placement
Funds from the placement will enable continued development of GoviEx's projects, bringing the company closer to its target of becoming a uranium producer by 2025, subject to project financing.
Following successful release of the feasibility study results for its Madaouela project, the company will now focus on progressing offtake and debt financing options, it said.
The funds will also be used to continue the development of the Muntanga project in Zambia, where GoviEx aims to complete a feasibility study by the end of 2023, and the continued exploration of its earlier stage Falea project in Mali, it added.
Under the offering each unit will consist of one Class A common share and one-half of one common share purchase warrant, with each warrant entitling the holder to purchase one common share at the US$ equivalent exercise price of C$0.33.
A cash commission of 6% may be payable on all, or a portion, of the units sold.
The offering is expected to close on or about October 20, 2022, assuming all necessary corporate and regulatory approvals are received.
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