U3O8 Corp. (NEX: UWE.H), (“U3O8” or the “Company”) is pleased to announce that due to significant demand, the Company has increased the size of its previously announced non-brokered private placement (the “Offering”) from C$2,000,000 to C$2,500,000 (the “Upsized Offering”). Under the Upsized Offering, the Company will sell up to a total of 22,727,272 units of the Company (the “Units”) at a price of C$0.11 per Unit for total gross proceeds of up to C$2,500,000.
Each Unit is comprised of one common share of the Company (each, a “Unit Share”) and one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase a common share of the Company (each, a “Warrant Share”) at a price of C$0.15 for a period of three years from date of issuance, subject to an acceleration clause described in the Company’s news release dated July 11, 2022 announcing the Offering.
Certain eligible finders who direct investors to participate in the Upsized Offering shall be paid a cash fee of 7% of the value of the subscriptions from such investors and shall be issued such number of finders’ warrants (“Finders’ Warrants”) worth up to 7% of the Units sold to such investors. Finders Warrants shall have the same terms as the Warrants.
The net proceeds from the Upsized Offering will be used to provide additional working capital to reinitiate operations in Colombia to advance the Company’s Berlin Deposit and for general corporate purposes. The closing of the Upsized Offering is expected to occur on or around July 29, 2022 and is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The Unit Shares, the Warrants and the Warrant Shares will be subject to a hold period of four months and one day from the closing date of the Upsized Offering, in accordance with applicable securities laws.
The securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About U3O8 Corp.
U3O8 Corp. is focused on the development of the Berlin Deposit in Colombia. Apart from uranium for clean, nuclear energy, the Berlin Deposit contains battery commodities including nickel, phosphate and vanadium. Phosphate is a key component of lithium-ion ferro-phosphate (“LFP”) batteries that are being used by BYD, Tesla and a growing list of electric vehicle manufacturers. Nickel is a component of various lithium-ion batteries, while vanadium is the element used in vanadium redox flow batteries. Neodymium, one of the rare earth elements contained within the Berlin Deposit, is a key component of powerful magnets that are used to increase the efficiency of electric motors and in generators in wind turbines.
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