VANCOUVER, BC, Dec. 30, 2020 /CNW/ - International Consolidated
Uranium Inc. ("CUR" or the "Company") (TSXV: CUR) is
pleased to announce that, further to its press releases from
December 15, 2020, the Company has
closed a non-brokered private placement financing of units of the
Company (the "Units") at a price of C$0.80 per Unit, for gross proceeds of
C$5,500,000 (the "Offering").
Red Cloud Securities Inc. ("Red
Cloud") acted as a finder in connection with the
Offering.
Each Unit is comprised of one common share ("Common
Share") of the Company and one-half of one whole common share
purchase warrant (each whole warrant, a "Warrant"). Each
Warrant entitles the holder thereof to purchase one Common Share
for a period of three years from the closing of the Offering at a
price of C$1.20 per Common Share.
The net proceeds from the Offering will be used for general
working capital purposes.
Philip Williams, President and
CEO commented, "With the close of todays financing, we believe CUR
is well funded, with over $10m in
cash and marketable securities, to execute on its strategy of
consolidating and developing uranium projects around the globe. We
would like to acknowledge the participation of our existing
institutional investors, including Sachem Cove and Segra Capital,
who subscribed for the bulk of the placement. Looking forward, 2021
is expected to be another exciting year for the Company as we
advance our current projects and work to execute on new
opportunities in the pipeline."
In connection with the Offering, the Company paid certain
eligible persons, including Red
Cloud (the "Finders") an aggregate cash commission of
C$274,400, equal to 7.0% of the gross
proceeds of the Offering sourced by Finders, of which $130,900 was paid through the issuance of 163,625
Units. The Company also issued to Finders a total of 343,000
non-transferable broker warrants ("Broker Warrants"), equal
to 7.0% of the Units sourced by Finders pursuant to the Offering.
Each Broker Warrant entitles the holder to purchase one Common
Share for a period of three years from the closing of the Offering
at a price of C$0.80 per Common
Share.
In addition, as consideration for advisory services in
connection with the Offering, the Company also paid Red Cloud an advisory fee of C$63,000, plus applicable sales taxes and issued
Red Cloud 78,750 Broker
Warrants.
All securities issued under the Offering are subject to a
restricted period of four months from the date of issuance. The
Offering is subject to the final approval of the TSX Venture
Exchange.
The Offering constituted a related party transaction within the
meaning of TSX Venture Exchange Policy 5.9 and Multilateral
Instrument 61-101 ("MI 61-101") as certain insiders of the Company
subscribed for an aggregate of 112,500 Units pursuant to the
Offering. The Company is relying on the exemptions from the
valuation and minority shareholder approval requirements of MI
61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101,
respectively, as the fair market value of the participation in the
Offering by insiders does not exceed 25% of the market
capitalization of the Company, as determined in accordance with MI
61-101. The Company did not file a material change report in
respect of the related party transaction at least 21 days before
the closing of the first tranche of the Offering, which the Company
deems reasonable in the circumstances in order to complete the
Offering in an expeditious manner.
Restricted Share Units
The Company also announces that 270,000 restricted share units
(the "RSUs") were granted to certain officers, directors,
and employees pursuant to the Company's Omnibus Long-term Incentive
Plan. The RSUs will vest immediately and entitle the holder
to receive one common share in the capital of the Company (the
"RSU Shares"). The RSU grant is subject to regulatory
approval and all RSU Shares issued are subject to a statutory hold
period expiring four months and one day from the grant date.
Mountain Lake Option Agreeement
Further to the Company's press releases of July 16, 2020 and October
1, 2020, the Company wishes to provide an update with
respect to its previously announced option to acquire a 100%
interest in the Mountain Lake uranium project in Nunavut, Canada from with IsoEnergy Ltd. The
Company will be seeking shareholder approval for the transaction in
accordance with the policies of the TSX Venture Excahnge at the
next annual and special meeting of the shareholders of the
Company.
About International Consolidated Uranium
International Consolidated Uranium Inc. (formally, NxGold Ltd.)
is a Vancouver-based exploration
and development company. The Company has entered option agreements
to acquire five uranium projects in Australia, Canada and Argentina each with significant past
expenditures and attractive characteristics for development: with
Mega Uranium Ltd. (TSX: MGA), the right to acquire a 100% interest
in the Ben Lomond and Georgetown
uranium projects in Australia;
with IsoEnergy Ltd. (TSXV: ISO), the right to acquire a 100%
interest in the Mountain Lake uranium project in Nunavut, Canada; with a private individual,
the right to acquire a 100% interest in the Moran Lake uranium and
vanadium project in Labrador,
Canada; and with U3O8 Corp. (TSXV: UWE.H), the right to
acquire a 100% interest in the Laguna Salada uranium and vanadium
project in Argentina. The Company
entered into the Mountain lake option agreement with IsoEnergy on
July 16, 2020, and the transaction
remains subject to regulatory approval, as does the transaction
with U3O8 Corp. on the Laguna Salada Project. In addition, the
Company owns 80% of the Mt. Roe gold project located in the Pilbara
region of Western Australia and
has entered into an earn-in agreement with Meliadine Gold Ltd. to
earn up to a 70% interest in the Kuulu Project (formerly known as
the Peter Lake Gold Project) in Nunavut.
Neither TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding "Forward-Looking"
Information
This news release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
"Forward-looking information" includes, but is not limited to,
statements with respect to activities, events or developments that
the Company expects or anticipates will or may occur in the future
including whether the proposed acquisition will be completed.
Generally, but not always, forward-looking information and
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or the
negative connotation thereofor variations ofsuchwords and
phrasesorstate that certain actions, events orresults "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on
numerous assumptions, including that general business and economic
conditions will not change in a material adverse manner, that
financing will be available if and when needed and on reasonable
terms, and that third party contractors, equipment and supplies and
governmental and other approvals required to conduct the Company's
planned exploration activities will be available on reasonable
terms and in a timely manner. Although the assumptions made by the
Company in providing forward-looking information or making
forward-looking statements are considered reasonable by management
at the time, there can be no assurance that such assumptions will
prove to be accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ
materially from any projections of future events or results
expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves or resources, reliance on key
management and other personnel, potential downturns in economic
conditions, actual results of exploration activities being
different than anticipated, changes in exploration programs based
upon results, and risks generally associated with the mineral
exploration industry, environmental risks, changes in laws and
regulations, community relations and delays in obtaining
governmental or other approvals.
Although the Company has attempted to identify important
factorsthat could cause actual resultsto differ materially from
those contained in the forward-looking information or implied by
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company undertakes
no obligation to update or reissue forward-looking information as a
result of new information or events except as required by
applicable securities laws.
Reader should also be cautioned that where reference is made to
mineralization of adjacent or near-by properties it is not
necessarily indicative of mineralization hosted on the Company's
Property.
SOURCE International Consolidated Uranium Inc.