Consolidated Uranium Inc. (TSX-V: CUR) (OTCQB: CURUF) is pleased to announce that further to its press release on October 18, 2021 regarding the creation and planned spin-out of Labrador Uranium Inc. LUR has completed its previously announced fully marketed private placement for gross proceeds of C$8,000,000 from the sale of 11,428,571 subscription receipts of LUR at a price of C$0.70 per Subscription Receipt. Red Cloud Securities Inc. acted as lead agent and sole bookrunner on behalf of a syndicate of agents including Haywood Securities Inc. and PI Financial Corp. under the LUR Offering.
Each Subscription Receipt entitles the holder thereof to automatically receive, upon satisfaction of certain escrow release conditions, one unit of LUR. Each Unit shall be comprised of one class B common share of LUR and one-half of one common share purchase warrant of LUR. Each Warrant will entitle the holder to purchase one class B common share of LUR at a price of C$1.05 for a period of 24 months following the Escrow Release Date (as defined herein). The Escrow Release Conditions includes the satisfaction of all conditions precedent to the completion of the Spin-Out as well as receipt of conditional approval for the listing of LUR’s class B common shares on the Canadian Securities Exchange.
The proceeds of the LUR Offering, net of 50% of the cash commission payable to the Agents and the reasonable out-of-pocket expenses of the Agents, will be held in escrow and not released to LUR unless the Escrow Release Conditions are satisfied on or before February 28, 2022. Following the satisfaction of the Escrow Release Conditions, the net proceeds of the LUR Offering are expected to be used to fund the proposed exploration programs for the Moran Lake Project, the Central Mineral Belt Project and the Notakwanon Project as well as for working capital and general corporate purposes.
In addition, LUR issued to 799,999 warrants to the Agents. Each Broker Warrant is exercisable to acquire one Common Share at a price of C$0.70 for a period of 24 months following the closing of the LUR Offering.
This news release does not constitute an offer of securities for sale in the United States. The securities offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About Consolidated Uranium
Consolidated Uranium Inc. 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., 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.
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We acknowledge the [financial] support of the Government of Canada.