GoviEx Uranium Inc. (TSX-V: GXU) (OTCQX: GVXXF) is pleased to report that it has closed its previously announced bought deal private placement financing, underwritten by Sprott Capital Partners of 46,213,000 units, which includes a partial exercise of the over-allotment option, at a price of C$0.22 per Unit for aggregate gross proceeds of C$10,166,860.

Each Unit consists of one Class A common share of the Company and one-half of one Common Share purchase warrant. Each Warrant entitles the holder thereof to purchase one Common Share at US$0.24 until October 25, 2025. The Company expects to close an additional tranche of units on the same terms as the Private Placement in the coming days.

The funds raised will enable continued development of GoviEx’s projects, bringing the Company closer to its target of becoming a uranium producer by 2025, subject to project financing. With the release of the Feasibility Study results for its Madaouela project in Niger on September 20, 2022, the Company will now focus on progressing offtake and debt financing options for the project. The net proceeds of the Private Placement will also be used to continue the development of the Muntanga project in Zambia, where GoviEx aims to complete a Feasibility Study by the end of 2023, and the continued exploration of its earlier stage Falea project in Mali. In addition to the foregoing, the net proceeds from the Private Placement will be used by the Company for exploration and general corporate and working capital purposes.

The Company paid a cash commission equal to 6% of the Units sold under the Private Placement to Sprott and a finder.

The Private Placement is subject to receipt of final approval by the TSX Venture Exchange. All securities issued pursuant to the Private Placement have a hold period ending February 26, 2022. In addition, securities issued to subscribers in the United States are subject to a hold period under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) and can only be resold in strict compliance with the applicable exemptions from the registration requirements of the U.S. Securities Act.

The securities issued pursuant to the Private Placement have not been, and will not be, registered under the U.S. Securities Act, or any U.S. state securities laws, and not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Certain insiders of the Company subscribed for a total of 277,000 Units under the Private Placement, which is a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The issuances to the insiders are exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company’s shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the Units issued to the related parties did not exceed 25% of the Company’s market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Private Placement as the details of the Private Placement and the participation therein by related parties of the Company were not settled until shortly prior to closing of the Private Placement.

About GoviEx Uranium Inc.

GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa. GoviEx’s principal objective is to become a significant uranium producer through the continued exploration and development of its flagship mine-permitted Madaouela project in Niger, its mine-permitted Mutanga project in Zambia, and its multi-element Falea project in Mali.