F3 Uranium unveils $15 million bought deal
F3 Uranium Corp. [FUU-TSXV] is raising $15 million from a bought deal private placement offering. The company said the proceeds will be used to fund uranium exploration at its projects in the Athabasca Basin of Saskatchewan.
F3 said an underwriting syndicate has agreed to purchase 30.9 million flow-through units of the company for 48.5 cents per unit on a bought deal basis. Each flow through unit will consist of one common share to be issued as a flow-through unit within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase warrant.
Each whole warrant entitles the holder to purchase one common for 48.5 cents for up to two years after the financing closes. The underwriters have been granted a green shoe option to purchase up to an additional 4.63 million flow-through units at the offering price, potentially generating additional proceeds of $2.25 million. The option remains exercisable for up to 48 hours prior to the closing date.
Details of the financing were announced after the close of trading on August 14, 2023, when F3 shares closed at 37 cents. 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.
F3 said it will drill 20 holes 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.
Exploration at PLN this year will include drilling at the A1 Conductor.