F3 Uranium Corp. [TSXV-FUU] said it has received $8.2 million from the exercise of warrants as the price of uranium trades near a 12-year-high. The company said the warrants were exercised between May 12, 2023, and November 10, 2023, with proceeds earmarked for the company’s projects, corporate development and general corporate and working capital purposes.
“We are pleased to see over $8 million in warrants exercised. With the addition of the $15 million investment by Denison Mines Corp. [TSX-DML], at 56 cents (convertible debenture), we continue to have confidence in the management and the PLN asset of F3,’’ said Dev Randhawa, F3’s Chairman and CEO.
“I have been in this industry since 1996 and have never seen the support from both sides of the aisle that nuclear is now receiving,’’ he said. “Uranium spot prices have hit a 12-year high of US$77. Nuclear energy is the solution for the two leading concerns of the world’s energy industry, security of supply, and clean, baseload energy supply.’’
The price of uranium price has recovered from the impact of the 2011 earthquake and tsunami in Japan that disabled three reactors in the Fukushima nuclear plant, causing their cores to melt down, forcing Japan to shut down 50 nuclear reactors that remained intact.
The repercussions sent the uranium price plunging from US$72.63 a pound in 2011 to a low of US$18.50 in late 2016.
F3 Uranium shares were unchanged Friday at 41 cents and trade in a 52-week range of 51 cents and $0.07.
F3 recently raised $20 million from a bought deal private placement financing that will be used to fund uranium exploration at its projects in the Athabasca Basin.
The company aims to find unconformity-related deposits, the most common of the 14 major categories of uranium deposit types. Notable examples include Key Lake, Cluff Lake, Rabbit Lake, McClean Lake, McArthur River and Cigar Lake.
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.
This year, the company said it expected to spend $12.8 million in Saskatchewan, including drilling at Patterson Lake North (PLN), one of the most advanced and highest ranked projects in F3’s portfolio by virtue of its location and the fact that it has multiple untested and prospective targets for high grade uranium.
Previous drilling by F3 at the more than 3.0-kilometre-long A1 conductor intersected basement hosted uranium mineralization supported by the presence of alteration, pathfinder elements and structural disturbance reinforcing the large-scale potential of the project, the company has said.