UEX Closes Oversubscribed Bought Deal Private Placement
October 10 2018 - 09:03AM
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
UEX Corporation (TSX:UEX)
(“UEX” or the “Company”) is pleased to announce that it closed its
previously announced flow-through common share offering with a
syndicate of underwriters led by Cormark Securities Inc. The
underwriters purchased 28,571,429 common shares that qualify as
“flow-through shares” for the purposes of the Income Tax Act
(Canada) (“Flow-Through Common Shares”) at a price of $0.21 per
Flow-Through Common Share of the Company for aggregate gross
proceeds to the Company of approximately
C$6.0 million.
The underwriters have also exercised their
overallotment option and purchased an additional 4,631,071 shares
at a price of $0.21 per Flow-Through Common Share for aggregate
gross proceeds of approximately $972,525.
As a result of the exercise of the overallotment
option, UEX has received aggregate gross proceeds of
approximately $6,972,525 by issuing a total of 33,202,500
Flow-Through Common Shares.
The net proceeds from the sale of the
Flow-Through Common Shares will be used to incur “Canadian
exploration expenses” (within the meaning of the Income Tax Act
(Canada)) related to UEX’s projects in Saskatchewan. The Company
will renounce these expenses to the purchasers with an effective
date of no later than December 31, 2018.
The securities issued by UEX in connection with
the Offering are subject to a four month plus one day “hold period”
as prescribed by the Toronto Stock Exchange and applicable
securities laws.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws
and may not be offered or sold within the United States or to or
for the account or benefit of a U.S. person (as defined in
Regulation S under the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
About UEX
UEX (TSX:UEX, OTC:UEXCF.PK, UXO.F) is a Canadian
uranium exploration and development company involved in eighteen
uranium projects, including seven that are 100% owned and operated
by UEX, one joint venture with Orano Canada Inc. (“Orano”) and ALX
Uranium Corp. (“ALX”) that is 50.1% owned by UEX and is under
option to and operated by ALX, as well as eight joint ventures with
Orano, one joint venture with Orano and JCU (Canada) Exploration
Company Limited, which are operated by Orano, and one project
(Christie Lake) under option from JCU (Canada) Exploration Company
Limited and operated by UEX.
The company is also involved in one
cobalt-nickel exploration project located in the Athabasca Basin of
northern Saskatchewan. The West Bear Project was formerly
part of UEX’s Hidden Bay Project and contains the West Bear
Cobalt-Nickel Deposit and the West Bear Uranium Deposit.
The eighteen projects are located in the
eastern, western and northern perimeters of the Athabasca Basin,
the world's richest uranium belt, which in 2017 accounted for
approximately 22% of the global primary uranium production.
UEX is currently advancing several uranium deposits in the
Athabasca Basin which include the Christie Lake deposits, the
Kianna, Anne, Colette and 58B deposits at its currently 49.1%-owned
Shea Creek Project (located 50 km north of Fission’s Triple R
Deposit and Patterson Lake South Project, and NexGen’s Arrow
Deposit) the Horseshoe and Raven deposits located on its 100%-owned
Horseshoe-Raven Development Project and the West Bear Uranium
Deposit located at its 100%-owned West Bear Project.
FOR FURTHER INFORMATION PLEASE CONTACT
Roger LemaitrePresident & CEO(306)
979-3849
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking
statements” within the meaning of Canadian securities legislation.
Such forward-looking statements concern the net proceeds from the
Offering, the intended use of proceeds, the renunciation of
Qualifying Expenditures and the scheduled closing date for the
Offering. Such forward-looking statements or information are based
on a number of assumptions, which may prove to be incorrect.
Assumptions have been made regarding, among other things:
conditions in general economic and financial markets; timing and
amount of Qualifying Expenditures incurred; and effects of
regulation by governmental agencies. The actual results could
differ materially from those anticipated in these forward looking
statements as a result of the risk factors including: the
availability of funds; the timing and content of work programs;
results of exploration activities of mineral properties; the
interpretation of drilling results and other geological data; and
general market and industry conditions. Forward-looking statements
are based on the expectations and opinions of the Company’s
management on the date the statements are made. The assumptions
used in the preparation of such statements, although considered
reasonable at the time of preparation, may prove to be imprecise
and, as such, readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
the statements were made. The Company undertakes no obligation to
update or revise any forward-looking statements included in this
news release if these beliefs, estimates and opinions or other
circumstances should change, except as otherwise required by
applicable law.
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