Standard Uranium Announces Closing of First Tranche of Private Placement
Standard Uranium Ltd. (TSXV: STND) has closed the initial tranche of its previously announced non-brokered private placement, raising gross proceeds of $889,700. The company issued 8,897,000 units at a price of $0.10 per unit, with net proceeds allocated to the exploration of the Davidson River project and working capital.
Each unit includes one-half of one common share purchase warrant. Each whole warrant allows the purchase of one common share at $0.15 for 36 months. These warrants are subject to an accelerated expiry clause, meaning they expire five days after a press release if the share price closes at or above $0.30 for 10 consecutive trading days.
A company director participated in the offering, subscribing for 1,000,000 units. This constitutes a related party transaction under National Instrument 61-101 (MI 61-101), exempt from valuation requirements because the shares are not on a specified market, and from minority shareholder approval because the fair market value of the consideration does not exceed 25% of the company’s market capitalization.
The company paid $34,800 in cash finder’s fees and issued 348,000 non-transferable warrants to arm’s-length parties. The terms for these finders' warrants are as follows:
- 138,000 warrants exercisable at $0.15 for 24 months (subject to accelerated expiry).
- 210,000 warrants exercisable at $0.15 for 24 months (no accelerated expiry).
All securities and underlying shares issued in this transaction are subject to a statutory hold period and TSXV hold period until October 31, 2026. The company intends to complete a further tranche of the offering.