VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 6, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
GoviEx Uranium Inc. (TSX VENTURE:GXU) ("GoviEx" or the "Company") is pleased to announce that, due to a higher than expected level of demand, the Company is increasing its Private Placement announced November 30, 2016 (the "Private Placement") by 5,000,000 Units for an aggregate offering of up to 35,000,000 Units at a price of C$0.10 per Unit (the "Unit Price").
In the case of further oversubscription, GoviEx has the option to increase the size of the Private Placement by up to an additional 15%, for a total maximum offering of up to 40,250,000 Units yielding maximum gross proceeds of up to C$4,025,000.
Clients of the Sprott group of companies ("Sprott") are now expected to subscribe for 25,000,000 Units (C$2,500,000) of the Private Placement, which is now expected to close on or before Monday, December 19, 2016, 3 days earlier than previously announced.
Govind Friedland, GoviEx's Executive Chairman of the Board said: "We are pleased that the offering has met with such an enthusiastic response and to be in the position to increase the size of the offering, which is a testament to the unwavering support of many of our long-time shareholders and incoming investors. We look forward to closing the Private Placement and moving the development of the Company's world-class uranium projects forward toward production for the benefit of all stakeholders."
The terms of Private Placement remain as previously disclosed. Each Unit will consist of one (1) Class A common share and one (1) Class A common share purchase warrant (a "Warrant") of the Company. Each Warrant will entitle the holder to purchase one (1) Class A common share of the Company for 60 months from the closing of the Private Placement at the US$ equivalent price of C$0.20 (the "Warrant Exercise Price").
Finder's fees may be payable on all or a portion of the Private Placement, and will consist of a cash fee of up to 6.0% of the gross proceeds received from the sale of Units and that number of non-transferable share purchase warrants (the "Finders' Warrants") equal to 6.0% of the Units placed by the finder, each Finder Warrant entitling the holder to subscribe for one (1) Class A common share for 36 months from the closing of the Private Placement at the US$ equivalent price of the Unit Price (the "Finder Warrant Exercise Price"), subject to adjustment.
The United States dollar ("US$") to Canadian dollar ("C$") exchange rate for the Warrant Exercise Price and Finder Warrant Exercise Price will be fixed based on the rate posted on the Bank of Canada's website for the business day prior to the closing date of the Private Placement.
Completion of the Private Placement will be subject to regulatory approvals, including the approval of the TSX Venture Exchange, 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
