GoviEx Uranium Successfully Closes $13.8 Million Bought Deal Offering
GoviEx Uranium Inc., a leading exploration and development company in the uranium industry, has recently announced the successful completion of a bought deal offering, securing a total of $13.8 million. The offering, consisting of 86.25 million units priced at 16 cents per unit, was boosted by the full exercise of over-allotment options by the underwriter.
Each unit in the offering includes one common share and one common share purchase warrant, allowing the holder to purchase a common share at an exercise price of 21 cents for 36 months post-closure.
Notable participants in the offering include Govind Friedland, Executive Chairman and Director of GoviEx Uranium Inc., and Director Eric Kraft, each acquiring 8.5 million units. Given their positions within the company, their involvement was categorized as a related party transaction.
Following this announcement, GoviEx shares experienced a marginal decrease of 3.2% or $0.005 to 15 cents, with a trading volume of 371,040 shares. The shares are currently trading within a 52-week range of 25.5 cents and 10.5 cents.
GoviEx Uranium Inc. remains focused on the exploration and development of its African uranium properties with the objective of becoming a significant uranium producer. The company is actively pursuing exploration and development activities in its mine-permitted projects in Niger, Zambia, and Mali.
Key shareholders of the company include Cameco Corp., Denison Mines Corp., and privately-owned Ivanhoe Industries. It has been stated that the proceeds from the bought deal offering will be utilized for exploration, engineering, and general corporate and working capital purposes, including the development of financing options for the Madaouela project.
In a recent milestone, GoviEx Uranium Inc. achieved an updated mineral resource estimate for its Mutanga Project, encompassing three mining permits covering 720 square kilometres and containing five deposits.
As of 2023, the updated mineral resource estimate stands at 42.6 million tonnes of grade 359 ppm U308 or 33.7 million pounds of U308 for measured and indicated resources, along with an inferred resource of 15 million tonnes of 330 ppm U308 or 10.9 million pounds of U308. These figures represent a substantial increase from previous estimates, underscoring the company’s commitment to continuous growth and development.
Additionally, the Madaouela Project, situated near Arlit in north central Niger, boasts impressive figures with 100 million pounds of U308 in the measured and indicated resource category and an inferred resource of 20 million pounds. The project has also made progress with the announcement of feasibility results in September 2022.
As GoviEx Uranium Inc. continues to demonstrate unwavering dedication and success, it is evident that the company is making significant advancements in the uranium industry. With a strong emphasis on exploration, development, and strategic partnerships, the company is well-positioned for ongoing growth and expansion in the years ahead.
