U3O8 Corp. Closes Bought Deal Private Placement to Raise $11,523,000
Corp. (TSX Venture: UWE) ("U3O8 Corp.") announces today that it has
closed its previously announced bought deal offering to raise aggregate gross
proceeds of $11,523,000 (the "Offering"). Dundee Securities Ltd.
("Dundee") acted as lead underwriter in connection with the Offering,
on behalf of a syndicate of underwriters which also included Clarus Securities Inc., PowerOne
Capital Markets Limited and National Bank Financial Inc. (collectively with
Dundee, the "Underwriters").
Pursuant to the Offering, U3O8 Corp. issued an
aggregate of 19,205,000 units ("Units") at $0.60 per Unit, including
an aggregate of 2,505,000 Units issued upon full exercise of the over-allotment
option granted to the Underwriters (the "Option"). Each Unit
consisted of one common share of U3O8 Corp. ("Share") and one-half of
one common share purchase warrant ("Warrant"). Each whole Warrant
entitles the holder thereof to acquire one Share of U3O8 Corp. for a period of
24 months at an exercise price of $0.80 per Share.
In connection with
the Offering, the Underwriters received (i) a cash
commission equal to 6.0% of the gross proceeds raised under the Offering
(inclusive of the Option), other than with respect to gross proceeds derived
from certain subscriptions by insiders of U3O8 Corp.; (ii) a work fee of
$85,000; and (iii) an aggregate of 1,104,096 non-transferable broker warrants,
each of which is exercisable into one Unit for a period of 24 months at an
exercise price of $0.60 per Unit.
The net proceeds of
the Offering will be used to advance the exploration and development of U3O8
Corp's projects in Colombia, Argentina and Guyana, and for general corporate
purposes. All securities issued in connection with
the Offering are subject to a statutory hold period expiring on June 10, 2012.
Insiders of U3O8 Corp. and their affiliates purchased an aggregate of 3,203,600
Units or approximately 17% of the Offering.
As a result of the
Offering, U3O8 Corp. has 122,099,158
Shares outstanding and 165,694,306 Shares on a fully diluted basis. The
Offering remains subject to the final approval of the TSX Venture Exchange.
About U3O8 Corp.
U3O8 Corp. is a Toronto-based exploration
company focused on exploration and resource expansion of uranium and associated
commodities in South America - a promising new frontier for exploration and
development. U3O8 Corp. has one of the most advanced portfolios of uranium
projects in the region comprising NI 43-101 compliant resources in Guyana,
Argentina and Colombia. Additional information on U3O8 Corp. is available on
the Company's web site at www.u3o8corp.com or on SEDAR at www.sedar.com.