F3 Uranium unveils $15 million bought deal financing
F3 Uranium Corp. [FUU-TSXV] has announced details of a $15 million bought deal private placement financing. The proceeds will be used to finance uranium exploration at F3’s projects in Saskatchewan’s Athabasca basin
The company said the underwriters have agreed to purchase for resale, 25 million units priced at 20 cents per unit; 16.7 million federal flow-through (FFT) units to be sold to charitable purchasers for 30 cents per FFT unit; and 15.15 million Saskatchewan flow-through (SFT) units to be sold to charitable purchasers for 33 cents per SFT unit.
Under the terms of the financing, each unit will consist of one common share and one half of one common share purchase warrant. Each FT unit will consist of one common share to be issued as a flow-through share within the the meaning of the Income Tax Act (Canada) and will qualify as an eligible flow-through share, as defined in the Mineral Exploration Tax Credit Regulations, 2014 (Saskatchewan), and one-half of one warrant. Each whole warrant will entitle the holder to purchase one common share for 30 cents at any time before a date that is 36 months after closing, which is expected to occur on October 1, 2025.
In addition, the company has agreed to grant the underwriters the option to purchase for resale an additional number of units and FFT units at their respective offering prices, potentially raising an additional $2.0 million in gross proceeds. That option can be exercised in whole or in part at any time up to 48 hours prior to the closing date.
F3 Uranium shares eased 13.9% or $0.03 to 18.5 cents. The shares trade in a 52-week range of 32.5 cents and 18 cents.
F3 Uranium is a uranium exploration company which is working to advance its newly high-grade JR Zone and Tetra Zone discovery 13 kilometres north of the PW area on its 100%-owned Patterson Lake North (PLN) project in the southwest Athabasca Basin.
The New JR Zone discovery is located less than 25 kilometres northwest of Paladin Energy Ltd.’s [PDN-ASX, PALAF-OTCQX], Triple R and NexGen Energy Ltd.’s [NXE-TSX, NYSE] Arrow high grade uranium deposits. Paladin Energy is the company that acquired Fission Uranium and its Patterson Lake South (PLS) project last year.
F3 currently has three properties in the Athabasca Basin: Patterson Lake North, Minto and Broach. F3 recently said it has commenced ground EM surveys at its 100%-owned Broach Lake property where the company intersected 67 metres total composite radioactivity at the Tetra Zone.
It said this survey will give greater confidence in locating the Tetra conductor and reduce the number of drill holes required to target along step-outs.
The company aims to find unconformity-related deposits, the most common of the 14 major categories of uranium deposit types.
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