AFRICA – GoviEx Uranium, a Canadian mineral resource company, has closed first tranche of fully subscribed non-brokered private placement offering for gross proceeds of approximately US$3.37 million offering over 35.7-million units.

The net proceeds from the private placement will be used to fund continued exploration and development activities on three company projects, Madaouela, in north central Niger; Mutanga, in Zambia and Falea, in Mali, and for general working capital purposes.

“The U308 spot price is up over 30 per cent from the beginning of this year and we are delighted by the strong support received from our lead institutional investor as well as other long-term shareholders seeking exposure to our quality pipeline of mineral projects,” said Govind Friedland, GoviEX executive chairman.

“We believe we are at a key turning point in the uranium market, and with this equity raise and support from a number of astute institutions, including a single lead investor taking the majority of the placement, the company will be well funded to achieve our corporate objectives for the year.”

The first tranche consists of the issue of up to 35,714,286 units at a price of 14 cents per unit. Each unit consist of one Class A common share in the capital of the company and one transferable share purchase warrant.

“The first half of 2020 has brought with it major challenges and GoviEX has responded to them well. Despite the various COVID-19 restrictions around the globe the company continues to advance its projects,” said Govind.

“The global demand for uranium has remained strong. New reactor construction is ongoing and COVID-19 related supply restrictions on top of existing production constraint from the major producers has put pressure on the uranium spot price to the upside.”

Each warrant will entitle the holder to acquire one common share for a period of 60 months from the date of issue at an exercise price equal to the US dollar equivalent of 20 cents.

“Accordingly, the updated prefeasibility study for the Madaouela project in Niger continues to be advanced with the team focusing improvements to the planned operations and process design to potentially reduce capital and operating expenses and improve resulting project economics from those previously reported in the current prefeasibility study on the Madaouela project, thereby improving the potential bankability of our flagship fully permitted Madaouela project,” added Govind

“Although COVID-19 has slightly impacted the timing for completion of the study, we remain confident to be able to announce results later this year.”

GoviEX is a mineral resource company focused on the exploration and development of uranium properties in Africa.

The company believes these preliminary results, when combined with the known uranium-silver-copper mineralisation of the Falea project mineral resources, have significantly raised the exploration potential of these licences. A significant portion of this current financing is anticipated to be allocated to testing this precious metal potential.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE