F3 Uranium to issue 815,217 shares for debt

Executive Summary

• F3 Uranium Corp. has elected to settle a portion of accrued interest owed to Denison Mines Corp. under their October 2023 financing agreement by issuing common shares and making a cash payment.
• The settlement involves a cash payment of $225,000 and the issuance of 815,217 common shares, valued at a deemed price of 13.8 cents per share.
• This transaction utilizes the equity payment option available under the terms of the debenture, which allows F3 to pay up to one-third of interest in shares based on the 20-day VWAP.

Key Details

• Transaction Structure: Settlement of accrued interest via cash and equity issuance.
• Cash Component: $225,000 paid to Denison Mines Corp.
• Equity Component: 815,217 common shares issued to Denison Mines Corp.
• Deemed Share Price: 13.8 cents per share.
• Debenture Terms:
  • Coupon: 9% per annum, payable quarterly.
  • Maturity Date: October 18, 2028.
  • Conversion Option: Denison may convert the debenture into common shares at a price of 56 cents per share.
  • Equity Payment Clause: F3 may pay up to one-third of interest in common shares at a price equal to the Volume-Weighted Average Price (VWAP) of F3's shares on the TSX Venture Exchange for the 20 trading days prior to the payment date.
• Regulatory Status:
  • Subject to TSX Venture Exchange approval.
  • Statutory hold period of four months and one day from issuance.
  • Approved by the Board of Directors; no formal valuation or minority shareholder approval required under Multilateral Instrument 61-101.
• Reference: Original debenture details were announced in news releases dated October 6, 2023, and October 18, 2023.

Notable Quotes

• None provided in the text.