CanAlaska Uranium upsizes financing to $11.5 million

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CanAlaska Uranium Ltd. [CVV-TSXV, CVVUF-OTCQB, DH7N-Frankfurt] is increasing the amount to be raised from a non-brokered private placement financing to $11.5 million, with proceeds earmarked for its exploration properties.

It said the offering will consist of a combination of non-flow-through units to be sold for 75 cents per unit, flow through units priced at 88 cents each, as well as charity units to be sold for $1.00 each.

Each non flow through unit will consist of one non-flow-through common share and one half of a warrant. Each flow-through unit and charity unit will consist of one flow-through share and one half of one warrant.

The warrants for all units will be the same, with each whole warrant entitling the holder to buy one non-flow-through common share for two years at $1.00. The exact number of non-flow-through units, flow through units and charity units sold will be determined at closing.

CanAlaska shares advanced on the news, rising 7.6% or $0.05 to 71 cents on volume of 158,180. The shares are currently trading in a 52-week range of 84 cents and 18.5 cents.

CanAlaska Uranium holds interests in approximately 300,000 hectares in Saskatchewan’s Athabasca Basin, a region that hosts some of the highest grade and lowest cost uranium deposits in the world, including the Cigar Lake, McArthur River and more recently discovered Arrow and Triple R. The company is a project generator that is positioning itself for discovery success in the region.

CanAlaska is currently working with Cameco and Denison Mines Corp. [DML-TSX] and Cameco Corp. [CCO-TSX, CCJ-NYSE] at two of the company’s properties on the Eastern Athabasca.

The junior recently said compilation work on its newly acquired Geikie project, which covers 33,897 hectares in the eastern Athabasca Basin has identified six new uranium targets along 35 kilometres of major structures.

It said the targets are outlined by coincident magnetic breaks and prospective geology offsets just 10 kilometres from 92 Energy Ltd.’s [92E-ASX] Gemini Project, where drill hole GEM004 intersected 5.5 metres of 0.12% U308.

Denison recently launched a 2,400-metre summer drilling program at the Moon Lake South uranium project. Under an option agreement with CanAlaska, Denison can earn a 75% stake in the Moon Lake South project. The project contains a 5.0-kilometre-long conductor corridor known as the Cr-3 conductor, which is located approximately 2.0 kilometres west of the K-trend, host to the Gryphon Deposit on Denison’s adjacent Wheeler River property.

Denison drilled one diamond drill hole near the southern boundary of the Moon Lake South project and confirmed the location of a new uranium target. The hole intersected an interval of fractured and friable sandstone with uranium mineralization immediately at the unconformity (0.1% U308 over 0.5 metres)

CanAlaska holds a 25% stake in the project, where drill crews aimed to evaluate four of the highest priority targets identified during surveys that were conducted in 2017 and 2020.

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