leadf
logo-loader
viewGoviEx Uranium

GoviEX Uranium closes first tranche of fully subscribed non-brokered private placement offering for gross proceeds of approximately $5M

The group said the net proceeds from the private placement will be used to finance continued exploration and development activities on GoviEx's Madaouela, Mutanga and Falea projects and for general working capital purposes

GoviEx Uranium -
The first tranche consists of the issue of up to 35,714,286 units at a price of 14 cents per unit

GoviEx Uranium Inc. (OTCMKTS:GVXXF) (CVE:GXU) said it has closed the first tranche of a fully subscribed non-brokered private placement offering for gross proceeds of approximately $5 million.

The group said the net proceeds from the private placement will be used to finance continued exploration and development activities on GoviEx's Madaouela, Mutanga and Falea projects and for general working capital purposes.

READ: GoviEx Uranium unveils new gold anomalies on Falea project that highlight significant mineral potential

The first tranche consists of the issue of up to 35,714,286 units at a price of 14 cents per unit. Each unit consist of one Class A common share in the capital of the company and one transferable share purchase warrant. Each warrant will entitle the holder to acquire one common share for a period of 60 months from the date of issue at an exercise price equal to the US dollar equivalent of 20 cents.

The final tranche of the private placement is expected to close on or before August 13 2020. All securities issued under this private placement are subject to the customary four-month hold period. The private placement remains subject to the final TSX Venture Exchange acceptance.

In a statement, Govind Friedland, GoviEX executive chairman commented: "The U308 spot price is up over 30 per cent from the beginning of this year and we are delighted by the strong support received from our lead institutional investor as well as other long-term shareholders seeking exposure to our quality pipeline of mineral projects," stated

"We believe we are at a key turning point in the uranium market, and with this equity raise and support from a number of astute institutions, including a single lead investor taking the majority of the placement, the company will be well funded to achieve our corporate objectives for the year.”

He added: ”The first half of 2020 has brought with it major challenges and GoviEX has responded to them well. Despite the various COVID-19 restrictions around the globe the company continues to advance its projects.

"The global demand for uranium has remained strong. New reactor construction is ongoing and COVID-19 related supply restrictions on top of existing production constraint from the major producers has put pressure on the uranium spot price to the upside.

"Accordingly, the updated prefeasibility study for the Madaouela project in Niger continues to be advanced with the team focusing improvements to the planned operations and process design to potentially reduce capital and operating expenses and improve resulting project economics from those previously reported in the current prefeasibility study on the Madaouela project, thereby improving the potential bankability of our flagship fully permitted Madaouela project.

"Although COVID-19 has slightly impacted the timing for completion of the study, we remain confident to be able to announce results later this year."

GoviEX is a mineral resource company focused on the exploration and development of uranium properties in Africa.

As announced on July 6, 2020, a recent gold geochemical sampling program on the company's Falea and Madini exploration licences forming part of the Falea (uranium-silver-copper) project in Mali highlighted significant gold in soils anomalies that show the potential extensions of the Sirabaya West and the Siribaya-Bambadinka gold trends through, and potentially intersecting within, the Falea project.

The company believes these preliminary results, when combined with the known uranium-silver-copper mineralisation of the Falea project mineral resources, have significantly raised the exploration potential of these licences. A significant portion of this current financing is anticipated to be allocated to testing this precious metal potential.

Contact the author at [email protected]

Quick facts: GoviEx Uranium

Price: 0.145 CAD

TSX-V:GXU
Market: TSX-V
Market Cap: $68.85 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of GoviEx Uranium named herein, including the promotion by the Company of GoviEx Uranium in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

GoviEx Uranium CEO talks new gold anomalies in Mali and updates on eagerly...

GoviEx Uranium Inc's (CVE:GXU) (OTCQB:GVXXF) Daniel Major discusses with Proactive's Andrew Scott new gold in soil anomalies at its Falea project in Mali. He says it indicates potential extensions of the Sirabaya West and Siribaya-Bambadinka gold trends and may intersect within the Falea...

on 07/10/2020

3 min read