U308 upsizes financing to $2.5 million

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U308 Corp. [UWE-TSXV] said it is increasing the size of a previously announced private placement financing to $2.5 million and will use the proceeds to reinitiate operations in Colombia and to advance its Berlin Project. That’s up from the previous $2.0 million target.

The announcement comes after the company said it has received conditional approval to list its common shares on the TSX Venture Exchange. It said approval for trading is subject to a number of conditions including:

  • Achieving positive working capital.
  • Receipt of conditional approval for the company’s debt settlement plan.
  • Completion of a NI 43-101 compliant technical report on the Berlin uranium and battery commodity deposit.
  • Closing of the private placement as expected on July 29, 2022.

U308 said it survived the 10-year bear market in the uranium sector thanks to shareholder support in private placements, wage deferrals and write-offs by senior management, the company’s board waiving fees, and through a loan for $1 million made available by the company’s former Chairman Dr. Keith Barron.

“The Board approved the repayment of the loan in cash. It repaid the principal on May 10, 2022,” the company said in a press release. It said the loan carried an interest rate of 8.0%, and payment of the accrued interest of approximately $250,000 is expected to be made shortly.

U308 said the board also approved the payment of salary-related debt to senior management of the company. Details of the debt settlement are contained in the company’s July 11, 2022 news release.

Under the upsized offering, U308 will sell up to 22.7 million units priced at 11 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share for 15 cents for three years after the date of issuance.

In the event that the closing price of the common shares is equal to or greater than 40 cents for 30 consecutive trading days, the company will have the option to accelerate the expiry of the warrants to 60 calendar days after the 30th day on which the corporation’s shares traded at or above 40 cents.

U308 is focused on the development of the Berlin Project in Caldas Province, Colombia. Berlin is a sediment-hosted uranium deposit that also contains vanadium, phosphate, nickel, rare earths and other elements.

Phosphate is a key component of lithium-ion ferro-phosphate batteries that are being used by a growing list of electric vehicle manufacturers.

Neodymium, one of the rare earth elements contained within the Berlin Deposit, is a key component of powerful magnets that are used to increase the efficiency of electric motors and in wind turbine generators.


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