Western Uranium closes $7.25 million financing
Western Uranium & Vanadium Corp. [CSE-WUC, OTCQX-WSTRF] said it has closed a brokered private placement financing that raised $7.25 million from the sale of 5.2 million units priced at $1.39 each.
The units consisted of one common share and one half of one common share purchase warrant. Each warrant is exercisable into one common share of the company at a price of $1.88 for four years from the issue date. A total of 5.2 million shares and 2.6 million warrants were issued in the offering.
Net proceeds are earmarked for following:
- Licensing and development of the Maverick minerals processing plant.
- Expand production capability at the Sunday Mine Complex by adding a second mining team to develop the next major orebody and continue underground long-hole drilling program.
- Continuation of permitting at San Rafael (Utah) and Topaz mine (Colorado).
- Purchase mining equipment to prepare for a third mining team.
- General corporate purposes, including general and administrative costs.
Western Uranium is a Colorado based mining company with a focus on low-cost, near-term production of uranium and vanadium in the western United States. The company has a large production-ready, permitted and developed high-grade uranium and vanadium resource, which includes the Sunday Mine Complex, developed by Union Carbide for almost US$50 million in the 1970s.
“Given improvements in uranium price levels, an expanding supply deficit and progress toward a U.S. ban on Russian uranium imports, we anticipate an increasing favorable environment for North American uranium mining,’’ said Western Uranium CEO George Glasier.
“This offering will expand and accelerate our mining and processing plant projects into the mid-term uranium market window, where we anticipate the supply shortage to be even more significant,’’ he said.
The financing update came after the close of trading on December 12, 2023, when Western Uranium shares closed at $1.55. The shares trade in a 52-week range of $1.98 and 87 cents.
Glasier has a record of uranium mining success, as the founder of Energy Fuels Inc. [TSX-EFR, NYSE-UUUU], which is currently the largest uranium and vanadium resource holder in the U.S.
The Sunday Mine Complex is located in western San Miguel County, Colorado. The complex consists of five individual mines, including the Sunday mine, the Carnation mine, the Saint Jude mine, the Western Sunday mine and the Topaz mine. The complex was most recently actively mined from 2007 to 2009.
The Sunday Mine Complex property consists of 221 unpatented claims on public lands covering approximately 3,800 acres, 20 of those claims are subject to a 12.5% royalty on all ore produced. Each of the mines included in the Sunday Mine Complex and its own mine permit and they are all currently on temporary cessation. The existing permits will need to be updated to include the Ablation onsite and a mine water treatment plant will need to be installed (and the appropriate permits obtained) for treating mine water.