GoviEx Uranium Inc. (TSX-V: GXU; OTCQB: GVXXF) (“GoviEx” or “Company”) today announced that it has closed a private placement financing (the “Private Placement”) of 35,674,911 units (“Units”) at a price of C$0.17 per Unit, with each Unit consisting of one (1) Class A common share and one (1) Class A common share purchase warrant (a “Warrant”) for gross proceeds of C$6,064,734.87.
https://sightlineu3o8.com/?p=4733&preview=trueEach Warrant entitles the holder to purchase one Class A common share of the Company over a 36-month period at a price of US$0.21 until June 5, 2019, US$0.24 until June 5, 2020, and US$0.28 until June 5, 2021.
The net proceeds from the Private Placement will be used to fund continued exploration and development activities on the Company’s projects, for working capital, and for general corporate purposes. A portion of the net proceeds from the Private Placement also may be used by the Company to provide a short-term loan in order to facilitate the completion of the share purchase agreement (“SPA”) between Toshiba Corporation (“Toshiba”) and a third party investor, which is a subject to the previously announced Termination Agreement and Mutual Release (the “Agreement”) between Toshiba and GoviEx. As previously announced on May 1, 2018, GoviEx has completed its payment obligations to Toshiba under the Agreement.
All securities issued under this Private Placement will be subject to the customary four-month hold period and may not be traded before October 6, 2018. In addition, securities issued to subscribers in the United States will be subject to a hold period under the Securities Act of 1933 (the “1933 Act”) and can only be resold in strict compliance with the applicable exemptions from the registration requirements of the 1933 Act.
GoviEx insiders subscribed for a total of C$10,200 or 60,000 units. The Company paid cash finders’ fees of C$42,866.75.
The Private Placement remains subject to the final acceptance of the TSX Venture Exchange.
About GoviEx Uranium
GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa. GoviEx’s principal objective is to become a significant uranium producer through the continued exploration and development of its flagship mine-permitted Madaouela Project in Niger, its mine-permitted Mutanga Project in Zambia, and its other uranium properties elsewhere in Africa.
Source: Goviex Uranium Inc.