UEX and Sprott Capital Partners Announce $6.0 Million Private Placement
January 18, 2017
UEX Corporation (UEX:TSX) (“UEX” or the “Company”) is pleased to announce that it has entered into an agreement with Sprott Capital Partners (the “Agent”), a division of Sprott Private Wealth LP, under which the Agent has agreed to act on behalf of the Company for a combined private placement (collectively, the “Offering”) of up to 16,000,000 units of the Company (the “Units”) at a price of C$0.25 per Unit and a further 6,700,000 common shares of the Company which will qualify as “flow-through” shares pursuant to the Income Tax Act (Canada) (the “FT Shares”) at a price of C$0.30 per FT Share.
Each Unit will consist of one common share of the Company and one common share purchase warrant (a “Warrant”). Each Warrant will be exercisable for one common share for a period of three years from the closing date at a price of C$0.42. The Unit Offering will provide proceeds of up to C$4.0 million and the FT Offering will provide proceeds of up to C$2,010,000 for aggregate proceeds to up to C$6,010,000.
The Agent will receive a cash commission on the sale of the Units and FT Shares equal to 6% of the aggregate gross proceeds raised, together with that number of broker warrants equal to 3% of the number of Units and FT Shares placed by the Agent. Each broker warrant will be exercisable for one common share of the Company for a period of two years at a price of C$0.30 per share.
The Company intends to use the gross proceeds of the Unit Offering for general working capital. The proceeds of the FT Share offering will be used to fund exploration of the Company’s uranium properties as qualifying Canadian Exploration Expenses as defined in subsection 127(9) of the Income Tax Act (Canada) which will be renounced to the subscribers with an effective date of December 31, 2017.
Closing of the Offering is anticipated to occur on or before February 28, 2017 and is subject to receipt of applicable regulatory approvals. The securities issued by UEX in connection with the Offering are subject to a hold period of four months plus one day as prescribed by applicable securities laws.
The Offering is being made in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Newfoundland and Ontario, and other jurisdictions as may be determined between the Company and the Agent, and is subject to the approval of applicable regulatory authorities.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such 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 United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.
On behalf of the Board of Directors of UEX
President & CEO
This news release may contain statements that constitute "forward-looking information" for the purposes of Canadian securities laws. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding the Offering, the use of the proceeds from the Offering, UEX's mineral resource and mineral reserve estimates, outlook for our future operations, plans and timing for exploration activities, and other expectations, intentions and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", “will”, “may”, or their negatives or other comparable words and phrases are intended to identify forward-looking information. Such forward-looking information is based on certain factors and assumptions and is subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from UEX's expectations include UEX’s ability to complete the Offering, uncertainties relating to interpretation of drill results and geology, additional drilling results, continuity and grade of deposits, participation in joint ventures, reliance on other companies as operators, public acceptance of uranium as an energy source, fluctuations in uranium prices and currency exchange rates, changes in environmental and other laws affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking information. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.