U3O8 (UWE-T) completes first tranche of oversubscribed PP
Feb 25, 2014 - NR
U3O8 Corp. has closed a first tranche of its non-brokered private placement previously announced on Feb. 13, 2014. Gross proceeds of approximately $840,200 were raised through the issue of approximately 6,463,070 units at 13 cents per unit.
The offering has been oversubscribed for aggregate gross proceeds of up to approximately $1.15-million, in which a second tranche of up to approximately $309,800 is expected to be closed shortly.
Each unit consisted of one common share of U3O8 and one share purchase warrant. Each warrant entitles the holder to purchase one share at a price of 18 cents for a period of 24 months from the closing date.
"We are pleased with the strong interest and support from both new and existing shareholders that have resulted in an oversubscribed placement," said Dr. Richard Spencer, U3O8's president and chief executive officer. "This financing will contribute towards positioning our Argentina deposit as a potential near-term uranium producer at a time when that country is seeking local uranium, and world supply is expected to enter a sustained and widening defecit from 2017."
All securities issued under the offering are subject to a four-month hold period. Finder's fees of $42,618 were paid in connection with the closing of tranche one. The offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals. An insider purchased approximately 9 per cent of the units issued in this first tranche.
The net proceeds of the offering will be used to advance U3O8's Laguna Salada deposit in Argentina as a potential low-cost uranium project that could be moved into production within a relatively short time frame, including refining the beneficiation process, completing the preliminary economic assessment and finalizing the definitive agreement to joint venture with Petromineras Chubut SE, Chubut's provincial resource company, as well as for exploration projects in Colombia and Guyana, and for general corporate purposes. |
