Jan 29 2011
U3O8 Corp. (TSX VENTURE:UWE) has announced that due to strong investor demand for its recently announced private placement of Units, the Company and the Underwriters have agreed to increase the size of the Offering by approximately C$2.8 million.
The Offering which is being conducted by a syndicate of underwriters led by GMP Securities L.P. and including Dundee Securities Corporation, PowerOne Capital Markets Ltd. and Haywood Securities Inc. (collectively, the "Underwriters"), will now include the issuance of an additional 3,350,000 Units at a price of C$0.85 per Unit, for a total of 21,000,000 Units being issued for aggregate proceeds of C$17,850,000. In connection with the Offering, the Company has granted the Underwriters an option, exercisable in whole or in part, at any time up to 48 hours prior to the closing of the Offering, to purchase 3,150,000 additional Units. If this option is exercised in full, an additional C$2,677,500 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be C$20,527,500.
Each Unit will consist of one common share in the capital of the Company (each a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share (a "Warrant Share") at a price of C$1.00 per Warrant Share (the "Exercise Price") for a period of 2 years following the closing of the Offering. Insiders of U3O8 Corp. intend to purchase, directly or indirectly, up to approximately C$3.6 million of the Offering.
The Company has agreed to pay to the Underwriters, in aggregate, a cash fee of up to 6% of the gross proceeds of the Offering (and any gross proceeds in connection with the exercise of the Underwriters' Option) and to grant to such Underwriters, in aggregate, that number of broker warrants which is up to 6% of the number of shares sold under the Offering, including the Underwriters' Option, with each such broker warrant entitling the holder to purchase one Unit of the Company at a price of C$0.85 for a period of 24 months from closing.
The net proceeds are intended to be used by the Company to advance the exploration and development of its projects in Guyana, Colombia and Argentina and for general working capital purposes.
The Offering is expected to close on or about February 15, 2011 and is subject to the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.
Source: U3O8 Corp.