ORIGINAL: Standard Uranium Increases Private Placement to $2.5 Million and Closes First Tranche
2023-12-14 08:00 ET - News Release
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, Dec. 14, 2023 (GLOBE NEWSWIRE) -- Standard Uranium Ltd. (“Standard Uranium” or the “Company”) (TSX-V: STND) (OTCQB:STTDF) (Frankfurt: FWB:9SU) is pleased to announce that it has closed the first tranche of its private placement (the “Offering”) which was previously announced on November 15, 2023. The Company issued an aggregate of 10,185,280 units of the Company (each, a “Unit”) at a price of C$0.05 per Unit and 29,825,687 flow-through units of the Company (each, a “FT Unit”) at a price of C$0.06 per FT Unit for aggregate proceeds of $2,298,805. In connection with closing of the first tranche, the Company paid $124,988 in cash and issued 2,084,297 finder's warrants (each, a “Finders’ Warrant”) to certain arms-length brokerage firms in consideration for introducing subscribers to the Offering. The Finders' Warrants are exercisable into one common share in the capital of the Company until December 13, 2025 at prices ranging from $0.05 to $0.09; 1,768,131 at $0.05 per Finders’ Warrant, 291,667 at $0.06 per Finders’ Warrant and 24,500 at $0.09 per Finders; Warrant.
Three insiders of the Company participated in the Offering and acquired an aggregate of 655,280 Units. The participation by insiders constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuances are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as they are distributions of securities for cash and the fair market value of the Units issued to, and the consideration paid by, the insiders did not exceed 25% of the Company's market capitalization. No new insiders were created, nor any change of control occurred, as a result of the first tranche of the Offering.
In addition, due to strong investor demand, the Company has increased the Offering from $2.0 million to $2.5 million. Each Unit will continue to consist of one common share of the Company (each a “Unit Share”) and one half of one common share purchase warrant (each whole warrant, a “Warrant”). Each FT Unit will continue to consist of one common share of the Company to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) (each, a “FT Share”) and one half of one Warrant. Each Warrant shall entitle the holder to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.09 at any time on or before that date which is twenty-four months after the closing date of the Offering.
The net proceeds raised from the Offering will be used for the exploration of the Company’s projects in Saskatchewan and for working capital purposes. Proceeds from the sale of FT Shares will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2023, in the aggregate amount of not less than the total amount of gross proceeds raised from the issuance of FT Shares.
A second and final tranche of the Offering is expected to close on or before December 20, 2023. Completion of the second tranche of the Offering remains subject to approval from the TSX Venture Exchange. All securities issued and issuable under the first tranche of the Offering will be subject to a four month hold period expiring April 14, 2024. Securities issued under any subsequent tranche(s) will be subject to a four month hold period calculated from their date of official closing.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Offered Securities, nor shall there be any sale of the Offered Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The Offered Securities being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person.
About Standard Uranium (TSX-V: STND)
We find the fuel to power a clean energy future
Standard Uranium is a uranium exploration company and emerging project generator poised for discovery in the world’s richest uranium district. The Company holds interest in over 187,542 acres (75,895 hectares) in the world-class Athabasca Basin in Saskatchewan, Canada. Since its establishment, Standard Uranium has focused on the identification, acquisition, and exploration of Athabasca-style uranium targets with a view to discovery and future development.
Standard Uranium's Sun Dog project, in the northwest part of the Athabasca Basin, Saskatchewan, is comprised of nine mineral claims over 19,603 hectares. The Sun Dog project is highly prospective for basement and unconformity hosted uranium deposits yet remains largely untested by sufficient drilling despite its location proximal to uranium discoveries in the area.
Standard Uranium’s Davidson River Project, in the southwest part of the Athabasca Basin, Saskatchewan, comprises ten mineral claims over 30,737 hectares. Davidson River is highly prospective for basement-hosted uranium deposits due to its location along trend from recent high-grade uranium discoveries. However, owing to the large project size with multiple targets, it remains broadly under-tested by drilling. Recent intersections of wide, structurally deformed and strongly altered shear zones provide significant confidence in the exploration model and future success is expected.
Standard Uranium’s Atlantic, Canary, Ascent, Corvo, and Rocas Projects, in the eastern Athabasca Basin, comprise twenty-three mineral claims over 25,242 hectares. The eastern basin projects are highly prospective for unconformity related and/or basement hosted uranium deposits based on historical uranium occurrences, recently identified geophysical anomalies, and location along trend from several high-grade uranium