Consolidated Uranium Announces Closing Of C$20.0 Million Bought Deal Private Placement

Consolidated Uranium Inc. (“CUR” or the “Company”) (TSXV: CUR) (OTCQB: CURUF) is pleased to announce the closing of its previously announced “bought deal” private placement (the “Offering”) for gross proceeds of C$20,000,750 from the sale of 7,547,453 units of the Company (the “Units”) at a price of C$2.65 per Unit (the “Unit Price”), which includes the full exercise of the over-allotment option. Due to significant demand, the Offering was upsized from its original gross proceeds of C$15.0 million. Red Cloud Securities Inc. acted as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters that included Haywood Securities Inc. and PI Financial Corp. (collectively, the “Underwriters”).
Philip Williams, President and CEO commented, “we are very pleased to have completed another over-subscribed and strongly institutionally subscribed private placement. I want to take the opportunity to thank existing and new shareholders for their support and confidence in the Company and our business plan, which remains to continue to build out the portfolio, the team and aggressively advance our current projects with a particular focus on the newly acquired past producing mines in the U.S. We strongly believe that with our strengthened balance sheet and track record of adding accretive acquisitions, we are well positioned to continue to execute and add value for all shareholders.”
Each Unit is comprised of one common share in the capital of the Company (each a “Unit Share”) and one half of one common share purchase warrant of the Company (each whole warrant, a “Warrant”). Each Warrant is exercisable to acquire one common share of the Company at a price of C$4.00 at any time on or before November 22, 2023.
The net proceeds raised from the Offering are expected to be used for general working capital purposes. In connection with the Offering, the Company paid to the Underwriters aggregate cash commissions of C$1,200,045 and issued to the Underwriters 452,847 warrants of the Company (the “Broker Warrants”). Each Broker Warrant is exercisable to acquire one common share of the Company at a price of C$2.65 at any time on or before November 22, 2023.
In addition, as previously announced, in satisfaction of $4,968,975.25 of the deferred cash payments that the Company owes to certain wholly-owned subsidiaries of Energy Fuels Inc. (“EFR”) pursuant to the asset purchase agreement announced on July 15, 2021 that closed on October 27, 2021, the Company has issued to EFR 1,875,085 common shares of the Company and 937,542 Warrants.
All securities issued in connection with the Offering and to EFR are subject to a statutory hold period under Canadian securities legislation ending on March 23, 2022.
About Consolidated Uranium
Consolidated Uranium Inc. (TSXV: CUR) (OTCQB: CURUF) was created in early 2020 to capitalize on an anticipated uranium market resurgence using the proven model of diversified project consolidation. To date, the Company has acquired or has the right to acquire uranium projects in Australia, Canada, Argentina, and the United States each with significant past expenditures and attractive characteristics for development. Most recently, the Company completed a transformational strategic acquisition and alliance with Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR), a leading U.S.-based uranium mining company, and acquired a portfolio of permitted, past-producing conventional uranium and
vanadium mines in Utah and Colorado. These mines are currently on stand-by, ready for rapid restart as market conditions permit, positioning CUR as a near-term uranium producer.