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Vancouver, British Columbia (October 4, 2022) – Standard Uranium Ltd. (“Standard Uranium” or the “Company”) (TSX-V: STND) (OTCQB: STTDF) is pleased to announce that, due to strong investor interest, it has elected to increase the maximum size of the non-brokered private placement announced by the Company on September 8, 2022 (the “Offering”) from C$3,500,000 to C$4,500,000 in aggregate gross proceeds. Standard Uranium is also pleased to announce the closing of the first tranche of the Offering. Under the first tranche, the Company sold 9,173,259 units (each, a “Unit”) at a price of C$0.11 per Unit and 8,944,400 flow-through units (each, a “FT Unit”, and collectively with the Units, the “Offered Securities”) at a price of C$0.13 per FT Unit for aggregate gross proceeds of C$2,171,830.
Each Unit consists of one common share of the Company (each a “Unit Share”) and one half of one common share purchase warrant (each whole warrant, a “Warrant”). Each FT Unit consists of one common share of the Company to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) (each, a “FT Share”) and one half of one Warrant. Each whole Warrant entitles the holder to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.17 at any time on or before September 29, 2024.
The net proceeds raised from the Offering will be used for the exploration of the Company’s projects and for working capital purposes. Proceeds from the sale of FT Shares will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act (“Qualifying Expenditures”). Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.
“We would like to thank new and existing shareholders for supporting the Company while we continue exploration on our flagship Davidson River project and our other projects in the Athabasca Basin,” said Jon Bey, Chief Executive Officer of the Company. “The close of the first tranche of the Offering gives the Company sufficient working and exploration capital to execute on our near-term goals. The continued strength of the uranium sector globally, and growing focus on nuclear energy as a reliable, environmentally friendly energy source puts Standard Uranium in an excellent position as we focus on raising additional funds with the second tranche of the Offering.”
In connection with the closing of the first tranche of the Offering, the Company paid finder’s fees to Red Cloud Securities Inc., and certain other arms-length brokerage firms, of C$105,799 cash and 876,786 finder’s warrants, each finder’s warrant exercisable for one Unit at an exercise price of C$0.11 per Unit until September 29, 2024.
The second and final tranche of the Offering is scheduled to close in the short term. Closing of the second tranche of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. All securities issued in the first tranche of the Offering are subject to a statutory hold period until January 30, 2023.
About Standard Uranium (TSX-V: STND)
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Standard Uranium is a mineral resource exploration company based in Vancouver, British Columbia. Since its establishment, Standard Uranium has focused on the identification and development of prospective exploration stage uranium projects in the Athabasca Basin in Saskatchewan, Canada.
Standard Uranium’s Davidson River Project, in the southwest part of the Athabasca Basin, Saskatchewan, is comprised of 21 mineral claims over 25,886 hectares. Davidson River is highly prospective for basement hosted uranium deposits yet remains relatively untested by drilling despite its location along trend from recent high-grade uranium discoveries. A copy of the NI 43-101 technical report titled “Updated Technical Report on the Davidson River Property, Northwest Saskatchewan, Canada” with an effective date of March 16, 2020, that summarizes the exploration on Davidson River is available for review under Standard Uranium’s SEDAR profile (www.sedar.com).
For further information contact:
Jon Bey, Chief Executive Officer and Chairman
550 Denman Street, Suite 200
Vancouver, BC V6G 3H1
Tel: 1 (306) 850-6699
E-mail: [email protected]
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