Traction raising $3 million for uranium projects

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Traction Uranium Corp. [TRAC-CSE, TRCTF-OTC, Z1K-FRA] said Thursday it has arranged to raise $3 million from a private placement financing, with proceeds earmarked for uranium projects in Saskatchewan’s Athabasca Basin.

The company said the brokered private placement will consist of any combination of flow-through units priced at 40 cents per unit and flow through units to be sold to charitable purchasers for 51 cents per unit.

Each flow-through and charity flow-through unit will consist of one common share of the company to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at 50 cents at any time on or before the date which is 24 months after the closing date of the offering.

The agent will have the option to sell up to an additional $500,000 in any combination of offered securities at the offering prices. That option remains open  for up to 48 hours prior to the closing date, which is expected to be around October 27, 2022.

On October 5, 2022, Traction shares closed at 32.5 cents and currently trade in a 52-week range of $1.08 and 27.5 cents.

The company said it intents to use the proceeds raised from the offering for exploration at the company’s Hearty Bay, Lazy Edwards Bay and Key Lake South uranium projects in the Athabasca Basin.

Lazy Edward Bay is one of two Athabasca projects that were recently optioned out to Traction Uranium. The other is the Hearty Bay project. Traction can earn a 70% stake in the two projects.

Traction and UGreenco Energy Corp. recently launched a phase 1 field geological program at their Key Lake South property, which is located in Saskatchewan’s Athabasca Basin.

Traction has the option to earn up to a 75% interest in the Key Lake South property. The property is situated approximately six kilometres southwest of Cameco Corp.’s [CCO-TSX, CCJ-NYSE] Key Lake uranium mill.

The objective of the program is to define drill targets for unconformity-type uranium deposits at Key Lake South. 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.

The company said an area of approximately 4.15 square kilometres is targeted for ground exploration with the objective of investigating surface uranium anomalies from the quantitative gamma-ray spectrometric survey of 2006 and the Athabasca Sandstone mapped in 1973.

Boulder prospecting will focus on the two surface anomalies (B and C) from the quantitative gamma-ray spectrometric survey, searching for uranium-bearing boulders for comparison with those from the surface anomaly “A”, the “Hot Island” identified in the early 1970s.

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