AZARGA URANIUM CORP. (TSX: AZZ, OTCQB: AZZUF, FRA: P8AA) (“Azarga Uranium” or the “Company”) is pleased to announce it has arranged a non-brokered private placement of up to 13,000,000 units (each, a “Unit”) at a price of $0.23 per Unit to raise proceeds of approximately $3.0 million (the “Financing”). Commitments of $3.0 million have been received, with institutional investors subscribing for most of the Financing.
Blake Steele, President and CEO, stated: “The funding commitments validate Azarga Uranium’s strategy as the Company continues to position itself for the ongoing recovery in the uranium sector. Institutional investment is often viewed as a key market signal for any industry and is an important indicator for our business and the broader uranium market. The Financing will solidify the Company’s balance sheet and fund its corporate initiatives as the supply and demand fundamentals of the uranium market continue to improve.”
The Company intends to use the proceeds of the Financing to: continue the advancement of the Dewey Burdock in-situ recovery uranium project (the “Dewey Burdock Project”), including the completion of an updated preliminary economic assessment; quantify uranium mineralization identified at its Dewey Terrace Project (located directly adjacent to the Dewey Burdock Project); continue the evaluation of in-situ recovery development options at its Gas Hills Project (located in Wyoming) and for general working capital purposes.
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 $0.31 per Share for a period of three years from the closing of the Financing. The Shares issued in connection with the Financing will be subject to a four-month and a day hold period. In addition, the Financing is subject to the approval of the Toronto Stock Exchange. Finder’s fees may be payable on a portion of the Financing.
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.