F3 Uranium Corp. [FUU-TSXV] has raised $20 million from a bough deal private placement financing that will be used to fund uranium exploration at its projects in the Athabasca Basin of Saskatchewan.
Under the offering, the company sold 41.2 million flow-through units, which included the underwriters’ over-allotment option at a price of 48.5 cents per share. Each flow-through unit consists of one common share issued as a flow-through share and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share for 48.5 cents per warrant share at any time before September 12, 2025.
News that the financing has closed came after the close of trading on September 12, 2023, when F3 Uranium shares rose 1.22% or $0.005 to 41.5 cents on volume of 543,710. The shares are currently trading in a 52-week range of 51 cents and $0.065.
Fission 3.0 is focused on finding the next high-grade deposit in Saskatchewan’s Athabasca Basin, the world’s richest uranium region, an area that in 2020 accounted for approximately 8.1% of the global primary uranium production.
F3 has 16 properties in its portfolio. 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 deposits – with some of the ore around 20% uranium.
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.
In a press release on July 17, 2023, the company announced scintillometer results from four holes from the ongoing 30-hole summer drill program at the JR Zone on the Patterson Lake (PLN) property, including two high grade intercepts in mineralized intervals that are both within 11 metres of the Athabasca Unconformity. The company is currently aiming to expand the footprint of the JR zone and continue to intercept high grades. F3 has been focused on drilling with two rigs (12,000 metres planned for the summer of 2023), targeting the JR zone expansion and testing new targets along the A1 shear zone.