Appia Rare Earths & Uranium Corp. (CSE:API, OTCQB:APAAF) has announced the offering of a non-brokered private placement of up to 10,000,000 flow-through (FT) shares at $0.50 per FT share or up to 10,000,000 working capital (WC) units at $0.43 per WC unit or a combination thereof to a maximum of up to 10,000,000 common shares and up to 10,000,000 WC warrants.
The company said it will be closing the first tranche of the offering with the issuance of 5,000,000 FT shares for gross proceeds of $2.5 million. The offering will remain open until the earlier of the sale of the remaining securities and December 22, 2022.
Each WC unit is priced at $0.43 and consists of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price equal to $0.65 per share for a period of 12 months following the closing of the offering.
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The WC units and FT shares to be issued under the offering will have a hold period of four months and one day from closing.
The net proceeds from the sale of WC units will be used for working capital requirements and other general corporate purposes. The gross proceeds from the sale of FT shares will be used for exploration expenses on the company's mining projects as permitted under the Income Tax Act (Canada) to qualify as Canadian Exploration Expenses.
All securities issued under the first closing are subject to a hold period expiring on March 23, 2023.
In connection with the offering, eligible finders will be paid $150,000.
The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the US Securities Act and applicable state securities requirements or pursuant to exemptions therefrom.
Appia is a Canadian publicly-listed company in the rare earth element and uranium sectors. The company is currently focusing on delineating high-grade critical rare earth elements and gallium on the Alces Lake property, as well as exploring for high-grade uranium in the prolific Athabasca Basin on its Otherside, Loranger, North Wollaston, and Eastside properties.
The company holds the surface rights to exploration for 105,026 hectares (259,525 acres) in Saskatchewan. It also has a 100% interest in 12,545 hectares (31,000 acres), with rare earth elements and uranium deposits over five mineralized zones in the Elliot Lake Camp, Ontario.
Contact the author at jon.hopkins@proactiveinvestors.com