AZARGA URANIUM CORP. (TSX:AZZ) (“Azarga Uranium” or the “Company”) has closed the first tranche of a non-brokered private placement for $558,750 through the issuance of 2,235,000 units (each, a “Unit”) at a price of $0.25 per Unit (the “First Tranche”). The final tranche of the non-brokered private placement is expected to close by 5 January 2018.
As announced on 5 December 2017, each Unit consists of one common share of the Company (each, a “Share”) and one-half of one Share purchase warrant (each whole warrant, a “Warrant”). One Warrant entitles the holder thereof to purchase one Share of the Company at a price of $0.35 per Share for a period of three years from the closing of the First Tranche. The Shares issued in connection with the First Tranche are subject to a four-month and a day hold period. The First Tranche is subject to the final approval of the Toronto Stock Exchange (the “TSX”).
In connection with the First Tranche, the Company paid cash finder’s fees of $15,000 and issued 60,000 Warrants to the finder.
As announced 5 December 2017, an insider of the Company sold 1,000,000 freely tradable Shares of the Company to an arm’s length third party and subscribed for 1,000,000 Units in the First Tranche (the “Transaction”). The issuance of the Warrants to the insider pertaining to the Transaction is subject to disinterested shareholder approval, in addition to the final approval of the TSX.
About Azarga Uranium Corp.
Azarga Uranium is an integrated uranium exploration and development company that controls six uranium projects, deposits and prospects in the United States of America (South Dakota, Wyoming and Colorado) and the Kyrgyz Republic. The Dewey Burdock in-situ recovery uranium project in South Dakota (the “Dewey Burdock Project”), which is the Company’s initial development priority, has received its Nuclear Regulatory Commission License and draft Class III and Class V Underground Injection Control (“UIC”) permits from the Environmental Protection Agency (“EPA”) and the Company is in the process of completing other major regulatory permit approvals necessary for the construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA.
Source: Azarga Uranium Corp.