VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 12, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
In response to continued, strong institutional and retail demand, GoviEx Uranium Inc. (TSX VENTURE:GXU) ("GoviEx" or the "Company") today announces that it will expand the Private Placement announced November 30, 2016 as amended December 6, 2016 (the "Private Placement") for an aggregate offering of up to 50,000,000 Units at a price of C$0.10 per Unit (the "Unit Price").
Following this Unit increase, the Company will no longer accept subscriptions, will cap the offering at 50,000,000 Units, and will proceed to close the Private Placement on or before Monday, December 19, 2016.
Govind Friedland, GoviEx's Executive Chairman of the Board said: "It is truly gratifying to see this high level of support from the investor community and our stakeholders. We have increased the financing twice, cut certain subscriptions back, closed the book early, and today imposed a cap on the total Private Placement size. These are all very positive indications of an improvement in sentiment in both our equity and the uranium sector. We thank all parties who have participated or otherwise expressed interest in this offering. This Private Placement empowers the Company to take the next step to advance its portfolio of African uranium projects and build true value for all stakeholders."
The terms of Private Placement remain as previously disclosed. Each Unit will consist of one (1) Class A common share and one (1) Class A common share purchase warrant (a "Warrant") of the Company. Each Warrant will entitle the holder to purchase one (1) Class A common share of the Company for 60 months from the closing of the Private Placement at the US$ 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 also will 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.
