U3O8 Corp. completes $7.2 million private placement
October 15, 2010
TORONTO, Ontario – U3O8 Corp. (TSX Venture: UWE) (U3O8 Corp. or the “Company”) is pleased to announce the closing of a fully subscribed brokered private placement previously announced on September 22, 2010 and September 29, 2010 (the “Offering). U3O8 Corp. has issued 23,989,100 units (the “Units”) at a price of $0.30 per Unit for gross proceeds of $7,196,730. The Offering was led by Dundee Securities Corporation and included PowerOne Capital Markets Limited and Canaccord Genuity Corp. (the “Agents”). Insiders of U3O8 Corp. purchased, directly or indirectly, approximately $2.2 million of the Offering.
Each Unit consists of one common share and one-half of one transferable common share purchase warrant. Each full warrant is exercisable into one common share for a period of two years after the Closing Date at a price of $0.45 per common share. In the event that at any time after February 15, 2011, the closing price for U3O8 Corp’s common shares is greater than $0.70 per share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the warrants to the 30th day after notice of the accelerated expiry date has been given by U3O8 Corp.
The securities issued under this financing will be subject to a four-month hold period from the Closing Date of the Offering, expiring February 15, 2011. U3O8 Corp. intends to use the net proceeds to advance the exploration and development of its projects in Guyana, Colombia and Argentina and for general working capital purposes.
"We are pleased to have strengthened our balance sheet, which allows us to continue to advance our lead projects in Colombia, Guyana and Argentina with the potential to expand our resource portfolio in the near-term,” said Dr. Richard Spencer, U3O8 Corp’s President and CEO. “An initial drill program is underway on the Berlin Project in Colombia with the goal of advancing the project for potential National Instrument 43-101 (“NI 43-101”) resource estimation in 2011. Scout drilling continues in Guyana with the aim of further increasing the potential size of the Kurupung uranium resource. In addition, extensive trenching in the Laguna Salada Project in Argentina continues to identify additional mineralization towards completion of a potential NI 43-101 resource estimate by the end of 2010.”