Toronto-based Puranium Energy (Puranium) has secured N$19.9 million to advance its uranium exploration efforts in Namibia.
Puranium’s President and CEO, Jason Bagg said the funds were secured in a private placement involving the issuance of 9,318,750 units at $0.08 per unit, generating $745,500 (N$13.9 million) in proceeds.
Additionally, the company settled $325,761 (N$6 million) of debt through a shares-for-debt transaction, issuing 4,072,010 common shares.
“The transaction is in line with the Canadian Securities Exchange (CSE) policies and subject to a four-month-and-one-day hold period,” Bagg said.
Puranium closed its non-brokered private placement, issuing units consisting of one common share and one-half common share purchase warrant.
“The warrants allow the holder to purchase an additional common share at $0.12 within thirty-six months. The offering is subject to a four-month-and-one-day statutory hold period,” the CEO said.
Insiders participated in the private placement, considered a related party transaction under Multilateral Instrument 61-101.
The company intends to rely on exemptions from formal valuation and minority shareholder approval requirements.
As part of the closing, the company paid $2,800 in cash finder’s fees and issued 35,000 finder’s warrants.
Proceeds from the offering will be allocated to exploration and general working capital purposes.
Meanwhile, certain aspects of the shares-for-debt transaction constitute a related party transaction, involving insiders such as Jason Bagg (CEO), Julio DiGirolamo (CFO), David Lees (Director), and Guy LePage (Director).
Bagg noted that the company relies on exemptions from valuation and minority shareholder approval requirements.
Meanwhile, Puraniuman also announced the non-renewal of two licenses, EPL 7337 and EPL 7907, after completing initial exploration.
This came after the company had set targets to raise N$21 million, with gross proceeds of up to N$14.4 million and N$6.3 million for a debt settlement plan involving 4,187,500 common shares.
The company aims to utilise the funds for exploration activities and general working capital requirements, emphasising its strategic focus on advancing exploration in Namibia’s Erongo region, known for its significant uranium resources.
Namibia ranks among the top global producers of uranium, contributing approximately 5,613 metric tonnes of U3O8 in 2022.
