Standard Uranium raising $4 million for Sask drilling
Standard Uranium Ltd. [STND-TSXV, STTDF-OTCQB] said it has struck a deal with an underwriting syndicate in connection with a private placement that is expected to raise up to $4 million.
Net proceeds will be used to fund exploration and development of the company’s Davidson River uranium project, which is located in Saskatchewan’s Athabasca Basin.
The offering is expected to consist of a minimum of 4.16 million units priced at 24 cents each, generating proceeds of $1 million, as well as flow-through units priced at 26.5 cents per unit, and flow-through units sold to charitable buyers and collectively with the flow-through units and units at a price of 32 cents per charity flow-through unit.
Each until will consist of one common share of the company and one half of one common share purchase warrant. Each flow through unit will consists of one common share to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada), one half of a warrant.
Each Charity flow-through unit will consist of one flow-through share and one half of one warrant. Each whole warrant will entitle the holder to purchase one common share of the company at 36 cents at any time prior to the three-year anniversary of the closing date, likely on August 5, 2021.
The agents will have an option to sell up to an additional $1 million worth of any combination of units, flow-through units or charity flow-through units. The green shoe option is exercisable in full or in part for up to 48 hours prior to the closing date.
Standard Uranium is focused on the identification and development of prospective exploration stage uranium projects in the Athabasca Basin. The company’s flagship Davidson River project is located in the southwest part of the Athabasca Basin, covering 25,886 hectares.
The company said the Davidson River project is highly prospective for basement hosted uranium deposits, yet remains relatively untested by drilling despite its location along trend from recent high-grade uranium discoveries.
The project is located 30 kilometres to the west of Fission Uranium Corp.’s [FCU-TSX; FCUUF-OTCQX; 2FU-FSE] 100%-owned Patterson Lake South property, which hosts the high-grade Triple R uranium deposit.
On June 1, 2021, Standard said it has launched a Phase 11 summer, 2021, diamond drill program at Davidson River. It also announced a summary of results form the Phase 11 winter, 2021 drilling on the same project.
The planned 10,000-metre program will consist of aggressive step-outs along strike from all four major conductive corridors on the project, centering on high-priority geophysical, structural, and geochemical target areas.
“As we continue to collect data from our drilling programs, this will help us vector into a high-grade uranium discovery,” said Standard vice-president, exploration Sean Hillacre.  “The trends and correlations we are seeing on the project have been integrated into our summer 2021 targeting, and we are very excited to have resumed drilling.”
On Friday, Standard Uranium shares eased 3.8% or $0.01 to 25 cents on volume of 331,200. The share are currently trading in a 52-week range of 38 cents and 12 cents.