CanAlaska Uranium ups financing target to $12 million

CanAlaska Uranium Ltd. [TSXV-CVV, OTCQB-CVVUF, DH7N-Frankfurt] said it has increased the amount it expects to raise from a previously announced private placement to $12 million, That’s up from the earlier target of $7.5 million.

CanAlaska holds interests in approximately 350,000 hectares in Canada’s Athabasca Basin, a region the company has described as the “Saudi Arabia of Uranium.” In 2020, the Athabasca Basin accounted for approximately 8.1% of the global primary uranium production.

The shares edged up 1.2% or $0.005 to 42 cents and currently trade in a 52-week range of 65 cents and 29 cents.

The company is currently working with Cameco Corp. [TSX-CCO, NYSE-CCJ] and Denison Mines Corp. [TSX-DML] at two properties in the Athabasca Basin.

CanAlaska said the offering will consist of a combination of the following:

• Non-flow-through units (the NFT units) to be sold for 36 cents per unit.
• Flow-through units to be sold for 42.5 cents per unit.
• Flow-through units to be sold to charitable purchasers for 55.7 cents each.

Each NFT unit will consist of one non-flow-through common share and one common share purchase warrant. Each flow-through unit will consist of one common share to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada), and one half of one common share purchase warrant.

Each Charity flow-through unit will consist of one common share to be issued as a flow-through share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share for 56 cents at any time for two years after the closing date.

CanAlaska is focused on finding unconformity-related deposits, the most common of the 14 major categories of uranium deposit types.

An unconformity is a buried erosional or non-depositional surface, separating two rock masses or strata of different ages, indicating that sediment deposition was not continuous. Basement-hosted deposits are spatially associated with and closely related to, unconformity uranium-occurrences.

The company recently announced the successful completion of a 2023 drilling program at its West McArthur is a joint venture with Cameco, where CanAlaska is the operator and holds a 79.4% interest in the project.

It said the drill program is highlighted by WMA082-2, which intersected 6.5 metres at 0.73% eU308, including 1.8 metres at 1.91% eU308. It said WMA082-2 has confirmed the high-grade basement mineralization immediately below the unconformity at the Pike Zone.

“Basement-hosted mineralization has now been confirmed over 160 metres into the basement along the controlling fault structures and remains completely open in all directions,’’ the company said.

The Pike Zone uranium discovery is located 20 kilometres southwest of Cameco and Orano Canada Inc.’s McArthur River uranium mine. The Pike Zone, discovered in July of 2022, lies along a structural corridor that hosts the company’s 42 Zone as well as the nearby Fox Lake uranium deposit (68 million pounds of U308 at 7.99%), immediately to the northeast and discovered by Cameco and Orano.