GoviEx Uranium Inc. (TSX.V:GXU) ("GoviEx" or the "Company") today announced its intention to undertake a C$3,000,000 private placement (the "Private Placement") in cooperation with the Sprott group of companies ("Sprott"). The Company will offer approximately 30,000,000 units ("Units") at a price of C$0.10 per Unit, with each Unit consisting of one (1) Class A common share and one (1) Class A common share purchase warrant (a "Warrant") of the Company.
Sprott clients are expected to subscribe for 20,000,000 Units (C$2,000,000) under the Private Placement, which is expected to close on or before Thursday, December 22, 2016.
Govind Friedland, Executive Chairman of the Board said: "We continue to believe in the quality of GoviEx's expanding portfolio of African uranium projects and that they represent an appealing investment opportunity given their stage of development and the ability of our experienced management team to bring these assets into production. With this financing, we are delighted to welcome the pre-eminent natural resource-focused investment firm Sprott and its clients as investors in GoviEx. Their participation is a testament to GoviEx's long-term value in the face of a challenging market. Sprott's lead order represents approximately two thirds of this planned financing, and is a strong vote of confidence for the Company and the uranium sector."
Each Warrant will entitle the holder to purchase one (1) Class A common share of the Company for 60 months from the closing of the Private Placement at the US$ equivalent price of C$0.20 (the "Warrant Exercise Price"). The United States dollar ("US$") to Canadian dollar ("C$") exchange rate for the Warrant Exercise Price will be fixed at closing date of the Private Placement and issuance of the Warrants.
Finder's fees may be payable on all or a portion of the Private Placement, and will consist of a cash fee of up to 6.0% of the gross proceeds received from the sale of Units and that number of non-transferable share purchase warrants (the "Finders' Warrants") equal to 6.0% of the Units placed by the finder, each Finder Warrant entitling the holder to subscribe for one (1) Class A common share for 36 months from the closing of the Private Placement at the Unit Price, subject to adjustment.
Completion of the Private Placement will be subject to regulatory approvals, including the approval of the TSX-V, and certain other customary conditions including, but not limited to, execution of subscription agreements between the Company and the subscribers.
The net proceeds from the Private Placement will be used to fund continued exploration and development activities on the Company's assets and for general corporate purposes. The funds will also enable the Company to pursue discussions related to strategic opportunities and potential transactions. All securities issued under this Private Placement will be subject to a hold period of four months from the date of issue.
About GoviEx Uranium
GoviEx is a mineral resource company focused on the exploration and development of a diversified portfolio of uranium projects in Africa. GoviEx's principal objective is to become a significant uranium producer through the continued exploration and development of its flagship Madaouela Project in Niger, as well as its Mutanga Project in Zambia, and its uranium-copper-silver exploration Falea Project in Mali.
Visit GoviEx's website: www.goviex.com
Source: GoviEx Uranium
