Home Sports GoviEx and Sprott deal raised from $5M to $10M due to strong...

GoviEx and Sprott deal raised from $5M to $10M due to strong demand


GoviEx Uranium Inc. (TSXV: GXU) (OTCQX: GVXXF) (the “Company” or “GoviEx”) is pleased to announce that, following a news release dated October 3, 2022, it has entered into a revised agreement with Sprott Capital Partners, on behalf of a syndicate of underwriters, to increase previously announced private placement financing of a purchase transaction (the “Offer”) due to strong investor demand. Pursuant to the amendment, the underwriters have agreed to purchase 45,500,000 units of the Company (the “Units”) at a price of C$0.22 per unit for an aggregate purchase price of C$10,010,000. Other terms of the Offer, including the over-allotment option, remain unchanged from the Company’s information release dated October 3, 2022.

The funds raised will enable the continued development of GoviEx’s projects, bringing the company closer to its goal of becoming a uranium producer by 2025, subject to project funding. Following the successful publication of the feasibility study results for the Madawell project, the company will focus its attention on expanding selection and debt financing options. The funds will also be used to continue development of the Muntanga project in Zambia, where GoviEx plans to complete a feasibility study by the end of 2023, as well as to continue exploration of its earlier phase of the Falea project in Mali.

Each unit will consist of one common share of the Company’s Class A (“Commonto share“) and one-half of one common share purchase warrant (each entire warrant, “Warrant“). Each warrant entitles its holder to purchase one common share (“Warrantto share“) at a US dollar equivalent exercise price of C$0.33 (the exchange rate is set based on the Bank of Canada’s daily exchange rate for US dollars one business day prior to the closing date) for a period of 3.0 years (36 months) after the closing of the Offer .

A cash commission of 6% may be paid on all or part of the units sold. The net proceeds of the Offering will be used by the Corporation for exploration and general corporate and working capital purposes.

The Offer is expected to close on or about October 20, 2022 or such other date as may be agreed between the Company and the Underwriters and is subject to certain conditions, including but not limited to the receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the Offer will have a hold period of four months and one day. In addition, securities issued by the subscriber in the United States will be subject to a holding period under the U.S. Securities Act of 1933, as amended (“US Securities Act“) and may be resold only in strict accordance with applicable exemptions from the registration requirements of the US Securities Act.

The securities to be issued pursuant to this offering have not been and will not be registered under the U.S. Securities Act or any U.S. government securities laws and may not be offered or sold in the United States without registration under the U.S. Securities and Exchange Act. securities and all applicable state securities laws or compliance with applicable exemption requirements. This press release does not constitute an offer to sell or an offer to buy securities in the United States, nor can there be a sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be illegal.

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GoviEx is a mining company specializing in the exploration and development of uranium deposits in Africa. GoviEx’s main objective is to become a significant uranium producer through the continued exploration and development of its flagship Madawela project in Niger, the permitted Muntanga project in Zambia and the multi-element Falea project in Mali.


Isabel Villella
Head of Investor Relations and Corporate Communications
Phone: +1-604-681-5529
email: info@goviex.com
Internet: www.goviex.com


This press release may contain forward-looking information within the meaning of applicable securities laws. All information and statements, other than statements of current or historical fact, contained in this press release are forward-looking information.

Forward-looking statements are subject to various risks and uncertainties with respect to specific factors disclosed herein and elsewhere in GoviEx’s periodic filings with Canadian securities regulators. When used in this news release, words such as “will,” “could,” “plan,” “estimate,” “expect,” “intend,” “may,” “potential,” “should” and similar expressions , are forward-looking statements. The information presented in this document is necessarily general and may not contain all material information available.

Forward-looking statements include statements regarding the expected scope, timing and completion of the private placement; the company’s goal to become a uranium producer by 2025; will now focus on promoting takeovers and debt financing options; the company aims to complete a feasibility study on its Muntang project by the end of 2023; continued exploration of his earlier-stage Falea project in Mali; receiving from the TSX Venture Exchange acceptance of the private placement; and the proposed use of the proceeds of the private placement.

Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it cannot guarantee that its expectations will be realized. Such assumptions that may prove to be incorrect include the following: (i) receipt of acceptance by the TSX Venture Exchange of the Private Placement will be received; (ii) sufficient subscriptions will be received to complete the Offer; (iii) the price of uranium will remain sufficiently high and the cost of promoting the Company’s mining projects sufficiently low for GoviEx to pursue its business plans in a profitable manner.

Factors that could cause actual results to differ materially from expectations include (i) the company’s inability to complete the private placement in whole or in part; (ii) the inability to effectively use the proceeds of the private placement; (iii) failure of the Company’s projects for technical, logistical, labor or other reasons; (iv) the Company’s failure to complete the Muntang Project Feasibility Study as and when planned; (v) the failure of the Company to obtain from the TSX Venture Exchange acceptance of the Private Placement; (vi) a decline in the price of uranium below what is necessary to sustain the Company’s operations; (vii) an increase in the company’s operating expenses beyond what is necessary to maintain its operations; (viii) accidents, labor disputes or the materialization of similar risks; (ix) deterioration of capital market conditions, preventing the Company from raising necessary funds in a timely manner; and (x) generally, the Company’s failure for any reason to develop and implement a successful business plan.

In addition, the factors described or referred to in the section entitled “Financial Factors” in GoviEx’s MD&A for the year ended December 31, 2021, which is available on the SEDAR website at www.sedar.com, should be considered in conjunction with the information contained in this news release.

Although GoviEx has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that could cause results to differ materially from those contained in forward-looking statements. , performance or achievement will not be as expected, estimated, or intended. There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future events, circumstances or results will be realized. As a result of these risks and uncertainties, no assurance can be given that any of the events contemplated by the forward-looking information in this news release will occur or will occur, or, if any of them occur, what benefit GoviEx will receive. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, and GoviEx disclaims any intention or obligation to update or revise such information, except as required by applicable law.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor may there be a sale of any securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The Securities have not been and will not be registered under the US Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold in the United States, or for the account of or in benefit , US Persons (as defined in Regulation S under the 1933 Act), unless they are registered under the 1933 Act and applicable state securities laws, or are exempt from such registration requirements.


To view the original version of this press release, visit https://www.newsfilecorp.com/release/139593


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