VANCOUVER, BC, Aug. 19, 2020 /CNW/ - IsoEnergy Ltd.
("IsoEnergy" or the "Company") (TSXV: ISO)
(OTCQX: ISENF) is pleased to announce that it has closed the
previously announced US$6 million
private placement of an unsecured convertible debenture (the
"Debenture") with Queen's Road Capital Investment Ltd.
("QRC") (TSXV: QRC).
Craig Parry, IsoEnergy's Chief
Executive Officer, commented: "It is with great pleasure that we
welcome Queen's Road Capital as a strategic investor of IsoEnergy
and we look forward to working with Warren
Gilman and his team as we continue with advanced exploration
and resource delineation at Hurricane. Summer drilling at
Hurricane is scheduled to commence very soon, and the Company is
now fully funded with over C$14.5
million in the treasury."
The Debenture will be convertible at the holder's option at a
conversion price of C$0.88 into a
maximum of 9,206,311 common shares of the Company (with
the exact number of common shares to be issued to be based on the
exchange rate at the time of conversion).
The Company will be entitled, on or after the third anniversary
of the date of issuance of the Debenture, at any time the 20-day
VWAP on the TSX Venture Exchange (the "TSXV") exceeds 130%
of the Conversion Price, to redeem the Debenture at par plus
accrued and unpaid Interest.
The Debenture will carry an 8.5% coupon (the "Interest")
over a 5-year term and will be convertible at the holder's option
into common shares of the Company at a conversion price of
C$0.88, which price will be converted
to USD at the time of conversion (the "Conversion
Price"). The Interest is payable semi-annually with 6%
payable in cash and 2.5% payable in common shares of the Company,
subject to TSXV approval, at a price equal to the market price of
the Company's common shares on the TSXV on the day prior to the
date such Interest is due.
The Interest can be reduced to 7.5% per annum on the public
dissemination by the Company of an economically positive
preliminary economic assessment study, at which point the cash
component of the Interest will be reduced to 5% per annum.
In connection with the issuance of the Debenture, the Company
has issued 219,689 common shares to QRC as an establishment
fee. All securities issued in connection with this financing
will have a four-month hold period expiring on December 18, 2020.
Including the proceeds from the recently closed non-brokered
private placement, IsoEnergy will have approximately C$14.5 million in the treasury. Proceeds
from the non-brokered private placement and the Debenture will be
used for exploration of the Company's properties in the
Athabasca Basin, Saskatchewan, and for general working capital
purposes.
About IsoEnergy
IsoEnergy is a well-funded uranium exploration and development
company with a portfolio of prospective projects in the eastern
Athabasca Basin in Saskatchewan, Canada. The Company
recently discovered the high-grade Hurricane Zone of uranium
mineralization on its 100% owned Larocque East property in the
Eastern Athabasca Basin. IsoEnergy is led by a Board and
Management team with a track record of success in uranium
exploration, development and operations. The Company was
founded and is supported by the team at its major shareholder,
NexGen Energy Ltd.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release shall not constitute an offer to sell or a
solicitation of any offer to buy any securities, nor shall there be
any sale of any securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities referenced
herein have not been, nor will they be, registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities
Act"), and such securities may not be offered or sold within
the United States absent
registration under the U.S. Securities Act or an applicable
exemption from the registration requirements thereunder.
Forward-Looking Information
The information contained herein contains "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable Canadian securities
legislation. "Forward-looking information" includes, but is not
limited to, statements with respect to the activities, events or
developments that the Company expects or anticipates will or may
occur in the future, including, without limitation, planned
exploration activities. Generally, but not always, forward-looking
information and statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes"
or the negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on
numerous assumptions, including among others, that the results of
planned exploration activities are as anticipated, the price of
uranium, the anticipated cost of planned exploration activities,
that general business and economic conditions will not change in a
material adverse manner, that financing will be available if and
when needed and on reasonable terms, that third party contractors,
equipment and supplies and governmental and other approvals
required to conduct the Company's planned exploration activities
will be available on reasonable terms and in a timely manner.
Although the assumptions made by the Company in providing
forward-looking information or making forward-looking statements
are considered reasonable by management at the time, there can be
no assurance that such assumptions will prove to be
accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ
materially from any projections of future events or results
expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves or resources, the limited
operating history of the Company, the influence of a large
shareholder, alternative sources of energy and uranium
prices, aboriginal title and consultation issues, reliance on key
management and other personnel, actual results of exploration
activities being different than anticipated, changes in exploration
programs based upon results, availability of third party
contractors, availability of equipment and supplies, failure of
equipment to operate as anticipated; accidents, effects of weather
and other natural phenomena and other risks associated with the
mineral exploration industry, environmental risks, changes in laws
and regulations, community relations and delays in obtaining
governmental or other approvals.
Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in the forward-looking information or implied by
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company
undertakes no obligation to update or reissue forward-looking
information as a result of new information or events except as
required by applicable securities laws.
SOURCE IsoEnergy Ltd.