CanAlaska Uranium arranges $10 million bought deal financing
CanAlaska Uranium Ltd. [CVV-TSXV, CVVUF-OTCQB, DH7N-Frankfurt] has arranged a $9.99 million bought deal private placement financing that will used to fund exploration at the company’s projects in Saskatchewan.
The private placement will consist of 8.4 million common shares that will qualify as flow-through shares under the Income Tax (Canada) Act at a price of $1.19 per flow-through share. It said gross proceeds from the sale of the shares will be used to incur eligible Canadian exploration expenses that qualify as “flow-through critical mineral mining expenditures’ related to the Saskatchewan projects prior to December 31, 2025 and to renounce all the qualifying expenditures in favour of the subscribers of the flow-through shares effective December 31, 2024.
The offering is expected to close by December 12, 2024.
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 company is currently working with Cameco Corp. [CCO-TSX, CCJ-NYSE] and Denison Mines Corp. [DML-TSX] at two properties in the Athabasca Basin.
In a press release on October 10, 2024, CanAlaska said it had received assays results from some of the drill holes completed on the Pike Zone during the summer of 2024. It said geochemical assay results confirm high grade uranium intersections on the L85E, highlighted by a composited high-grade uranium intersection (WMA082-11) grading 6.47% U308 over 25.8 metres, including a high-grade zone of 22.78% U308 over 4.0 metres, and WMA082-8, which returned 7.63% U308 over 16.2 meters, including an ultra high-grade zone of 17.31% U308 over 6.1 metres.
Drilling at the Pike Zone was completed as part of a 2024 exploration program on the West McArthur joint venture project in the eastern Athabasca Basin. The project is a joint venture with Cameco Corp, which ranks among the world’s leading uranium producers. The project is operated by CanAlaska which holds a 83.35% ownership interest. CanAlaska is sole funding the 2024 West McArthur program, further increasing its majority ownership in the project.
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 summer drill program on the West McArthur project consisted of 15 unconformity tests split between the Pike Zone expansion and extensional testing along the geophysical corridor. At the Pike Zone, 12 unconformity tests were completed, of which 11 contained uranium mineralization.
On Monday, CanAlaska eased 1.3% or $0.01 to 76 cents. The shares trade in a 52-week range of 82 cents and 33.5 cents.