IsoEnergy Ltd. (TSX-V: ISO) is pleased to announce that it has closed its previously announced $18.3 million financing comprised of:
The Debenture carries a 10% coupon over a 5-year term, with the principal amount (adjusted to Canadian dollars) convertible at the holder’s option into common shares of the Company, at a price of C$4.33 per share, for a maximum of 1,464,281 shares, with the exact number of shares determined based on the exchange rate at the time of conversion. The Interest is payable semi-annually, with 7.5% payable in cash and 2.5% payable in common shares of the Company, subject to the approval of the TSX Venture Exchange, at a price equal to the 20-day volume-weighted average trading price of the Company’s common shares on the TSXV on the day prior to the date such Interest is due. The Company is entitled, on or after the third anniversary of the issuance of the Debenture, at any time the 20-day VWAP exceeds 130% of the Conversion Price, to redeem the Debenture at par plus accrued and unpaid Interest. In connection with the issuance of the Debenture, the Company paid QRC an establishment fee of US$120,000 in cash.
Including the proceeds from the financing, IsoEnergy now has cash reserves of approximately C$20.7 million. Proceeds from the financing will be used for exploration and development of the Company’s properties in the Athabasca Basin, Saskatchewan, potential future acquisitions and for general corporate purposes.
Pursuant to applicable securities laws, all securities issued in connection with the financing have a four-month hold period expiring on April 7, 2023.
IsoEnergy is a well-funded uranium exploration and development company with a portfolio of prospective projects in the infrastructure-rich eastern Athabasca Basin in Saskatchewan, Canada. In 2018, the Company discovered the high-grade Hurricane Deposit on its 100% owned Larocque East property in the eastern Athabasca Basin. The Hurricane Deposit has Indicated Mineral Resources of 48.61 Million lb U3O8 based on 63,800 tonnes grading 34.5% U3O8 and Inferred Mineral Resources of 2.66 Million lb U3O8 based on 54,300 tonnes grading 2.2% U3O8 (July 8, 2022). The Hurricane Deposit is 100% owned by IsoEnergy and is unencumbered from any royalties. IsoEnergy is led by a Board and Management team with a track record of success in uranium exploration, development, and operations. The Company was founded and is supported by the team at its major shareholder, NexGen Energy Ltd.
NexGen Early Warning Report Information
As a consequence of the financing, NexGen has acquired 1,801,802 common shares of the Company at a price of C$3.33 per share for an aggregate purchase price of C$6,000,000.66. Immediately prior to the financing, NexGen beneficially owned and controlled 53,479,833 common shares of the Company, representing approximately 50.05% of the outstanding common shares (calculated on an undiluted basis). Immediately following the financing, NexGen beneficially owns and controls 55,281,635 common shares of the Company, representing approximately 50.17% of the issued and outstanding common shares, representing a decrease of approximately 4.83% relative to the number of common shares of the Company that NexGen reported as holding in its previous early warning report dated December 20, 2018 as a result of subsequent share issuances by the Company.
The Company has been advised by NexGen that the common shares were acquired by NexGen for investment purposes and that NexGen may, depending on market conditions and other available investment and business opportunities and subject to any statutory restrictions, increase or decrease its ownership of, or control or direction over, securities of the Company, whether in the open market, by privately negotiated agreements or otherwise.
The disclosure regarding NexGen’s shareholdings contained in this news release is made pursuant to National Instrument 62-104 – Take-Over Bids and Issuer Bids and a report respecting these matters will be filed by NexGen with the applicable securities regulatory authorities using the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) and will be available for viewing under the Company’s profile at www.sedar.com.
Qualified Person Statement
All scientific and technical information in this press release has been reviewed and approved by Mr. Andy Carmichael, P.Geo., IsoEnergy’s Vice-President, Exploration. Mr. Carmichael is a qualified person for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. For additional information regarding the Company’s Larocque East property, please see the Technical Report titled “Technical Report on the Larocque East Project, Northern Saskatchewan, Canada” dated August 4, 2022, available on the Company’s profile at www.sedar.com.
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