GoviEx Uranium Inc. (TSX.V: GXU) ("GoviEx" or the "Company") today announced that it has closed the first tranche of its previously announced private placement financing (the "Private Placement"), positioning the Company to advance its portfolio of advanced stage uranium exploration projects. In this first tranche, the Company issued an aggregate of 47,429,856 Units at a price of C$0.10 per Unit, for gross proceeds to the Company of approximately C$4.742 Million. The second tranche is expected to close on or before Friday, December 23, 2016.
Govind Friedland, Executive Chairman of the Company said, "This is an incredibly important day for the Company's shareholders, employees, partners and stakeholders. Closing this financing recognizes the hard work and dedication of our team, and the financial support of the investor community. It also validates our decision to migrate to the TSX Venture Exchange and to pursue strategic transactions that demonstrate our commitment to growing our resource base and advancing our projects towards production."
"We'd like to thank Sprott Global Resource Investments, Ltd. and all those investors who participated in this financing, and also those partners who have helped build the Company over the years, including Denison Mines, Ivanhoe Industries, Toshiba Corporation, Cameco Corporation and SEMAFO. We are grateful for all the support and will make every effort to build and realize value for all stakeholders."
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 customary hold period and may not be traded before April 20, 2017. In addition, securities issued to subscribers in the United States will be subject to a hold period under the Securities Act of 1933 (the "1933 Act") and can only be resold in strict compliance with the applicable exemptions from the registration requirements of the 1933 Act.
Each Unit consists of one (1) Class A common share and one (1) Class A common share purchase warrant (a "Warrant") of the Company. Each Warrant entitles the holder to purchase one (1) Class A common share of the Company for US$0.15 until December 19, 2021.
GoviEx insiders subscribed for C$60,820 or 608,200 Units. In aggregate, the Company paid finders' fees of approximately C$188,640 and issued finders' warrants exercisable for up to 1,886,400 common shares of GoviEx. Each finder warrant allows the holder to subscribe for one (1) Class A common share until December 19, 2019, at an exercise price of US$0.075.
The Private Placement remains subject to the final acceptance of the TSX Venture Exchange.
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
