GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) said it has completed its previously-announced bought deal private placement financing, underwritten by Sprott Capital Partners, of 46,213,000 company units, which includes a partial exercise of the over-allotment option, at a price of C$0.22 per unit for gross proceeds of C$10,166,860.
The uranium explorer and properties developer said the funds raised 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.
GoviEx noted the net proceeds from the offering 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, as well as for exploration and general corporate and working capital purposes.
READ: GoviEx Uranium doubles size of bought deal private placement following strong demand
It added that with the release of the feasibility study results for its Madaouela project in Niger on September 20, 2022, the company will now focus on progressing offtake and debt financing options for the project.
Certain company insiders subscribed for a total of 277,000 units under the private placement, according to GoviEx.
Each unit of the private placement consisted of one Class A company common share plus one-half of one common share purchase warrant, with each warrant entitling the holder to purchase one GoviEx common share at a price of US$0.24 until October 25, 2025.
As well, the company reported that it expects to close an additional tranche of units on the same terms as the private placement in the coming days.
GoviEx noted it paid a cash commission equal to 6% of the units sold under the private placement to Sprott and a finder.
The private placement is subject to receipt of final approval by the TSX Venture Exchange and all securities issued are subject to a hold period ending February 26, 2023.
GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa.
Contact Sean at sean@proactiveinvestors.com