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U3O8 Corp. (TSX:UEW,OTCQB:UWEFF) announced that the company has raised gross proceeds of C$517,000 via a private placement. The company also said that founder, director and shareholder Dr. Keith Barron has offered to provide a C$1-million unsecured operating line of credit.
U3O8 Corp. (TSX:UEW,OTCQB:UWEFF) announced that the company has raised gross proceeds of C$517,000 via a private placement. The company also said that founder, director and shareholder Dr. Keith Barron has offered to provide a C$1-million unsecured operating line of credit.
Barron commented:
I believe that the market cap of U3O8 Corp. has fallen to levels well below the value of the Laguna Salada Deposit, let alone the Company’s other assets. Laguna Salada has a low-cost uranium production profile, is located in a country that needs uranium to fuel its expanding nuclear electricity program, and would produce by-product vanadium into a market that has fallen into long-term deficit. Raising equity funds to advance Laguna Salada at these share prices is simply too dilutive to existing shareholders and therefore I am willing to provide a financing facility to assist the Company through this period of low uranium commodity prices.
Dr. Richard Spencer, U3O8’s president and CEO, said:
Keith’s offer is extremely generous to the Company and its shareholders. This additional funding comes as a result of Keith having spent considerable time at Laguna Salada where he gained first-hand knowledge of the Deposit’s potential. Keith is offering the funds required to complete proof of concept work on the Deposit, while only being repaid in shares after the Project has been significantly de-risked.
Click here to read the full U3O8 Corp. (TSX:UEW,OTCQB:UWEFF) press release.