AZARGA URANIUM CORP. (TSX:AZZ) “Azarga Uranium” or the “Company”) is pleased to announce that insiders and warrant holders have exercised 11,870,866 share purchase warrants, prior to their expiry on 15 August 2018, for proceeds of approximately C$2.4 million.
Further, as announced on 5 July 2018, Azarga Uranium settled C$2.8 million of debt, inclusive of accrued interest, owing to three shareholders, including one insider, through the issuance of 11,269,243 common shares at a deemed price of C$0.25 per common share. Additionally, as announced on 19 April 2018, the Company executed a replacement earn-in agreement for its Kyzyl Ompul project in the Kyrgzy Republic, which is expected to generate US$60,000 per month commencing 1 September 2018, increasing to US$229,000 per month commencing 1 January 2019, with a final payment of US$223,000 on 1 December 2020. To date, the Company has received the initial payment of US$120,000 under this agreement.
Blake Steele, President and CEO, stated: “the additional capital and conversion of debt significantly strengthens the Company’s balance sheet and ensures that the Company is well positioned to execute its initiatives. The Company intends to use the proceeds of the warrant exercise to continue advancing the Dewey Burdock in-situ recovery project (the “Dewey Burdock Project”) towards construction, to complete an updated and expanded resource estimate for the Dewey Burdock Project, to continue to evaluate future in-situ recovery development options at Gas Hills and for general working capital purposes.”
About Azarga Uranium Corp.
Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects and prospects in the United States of America (“USA”) (South Dakota, Wyoming, Utah and Colorado) and the Kyrgyz Republic, with a primary focus of developing in-situ recovery uranium projects in the USA. 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.
