Fission Uranium (TSX: FCU) this morning announced that it will be conducting a bought deal offering for gross proceeds of $15.0 million. The financing, lead by Eight Capital as sole bookrunner, will see units of the company sold at a price of $0.275.
Each unit sold under the offering will contain one common share and one half warrant, good for a period of two years following the close. Each whole warrant will have an exercise price of $0.41. A total of 54,545,500 units are expected to be sold in the offering, for gross proceeds of $15.0 million.
A 15% over allotment option has been granted to the underwriters of the transaction, which will be good for a period of 30 days following the close of the transaction. Further, should CGN Mining Company exercise its right to maintain their pro-rata interest in the company, the overall financing could be subject to expansion.
Sponsored · Cambria Gold Mines
Proceeds from the financing will be used to fund development of the Triple R deposit located in Saskatchewan, as well as for the repayment of certain debt owing under the credit facility, working capital and general corporate purposes.
The financing is expected to close November 17, 2020.
Fission Uranium last traded at $0.32 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned above. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
