Toronto-based Puranium Energy Ltd. says it aims to raise N$20,865,225 in gross proceeds from a non-brokered private placement offering to advance uranium exploration in Namibia.
Puranium’s President and CEO, Jason Bagg said the private placement also encompasses the issuance of common shares to retire outstanding payables, reinforcing the company’s financial position.
Bagg said the comprehensive initiative encompasses the issuance of 9,500,000,000 units at US$0.08 (N$1.52) each, with gross proceeds of up to US$760,000 (N$14.4 million).
This is coupled with a debt settlement plan involving 4,187,500 common shares at the same price of up to $335,000 (N$6.3 million) of outstanding payables.
The combined potential gross proceeds from both the units and debt settlement components are substantial up to US$1,095,000.
“Company has updated its previously announced non-brokered private placement with the following terms: up to 9,500,000,000 units at a price of US$0.08 per unit are being offered for gross proceeds of up to $760,000 and up to 4,187,500 US$0.08 common shares for retirement of up to US$335,000 of outstanding payables. The gross proceeds will be up to US$1,095,000,” Bagg said.
Investors keen on participating in this financing opportunity will find each unit composed of one common share and one-half common share purchase warrant.
The attractiveness of the deal lies in the fact that each full warrant entitles the holder to purchase an additional common share at the fixed price of US$0.12 (N$2.29).
The warrants, providing a window for further investment, remain exercisable for 36 months from the closing of the offering.
“To ensure compliance with regulatory standards, all securities issued as part of this offering will be subject to a four-month-and-one-day statutory hold period and will carry appropriate legends,” he said.
Bagg emphasised the strategic allocation of the anticipated proceeds, “with a focus on advancing exploration activities and meeting general working capital requirements”.
Puranium Energy is focused on uranium exploration of its 85% interest in seven Exclusive Prospecting Licences totalling 93,514 hectares in the Erongo region.
Namibia is one of the top uranium producing regions in the world, producing approximately 5,613 metric tonnes of U3O8 in 2022.-miningandenergy.com.na
