Foremost Clean Energy Upsizes Private Placement to C$9.5 Million
Friday, Oct 25, 2024 12:55 pm ET
1min read Foremost Clean Energy Ltd. (NASDAQ: FMST) (CSE: FAT) has announced a significant revision to its previously announced brokered private placement, increasing the maximum gross proceeds from C$7,000,001 to C$9,500,000. This upsized offering reflects strong investor demand and the strategic participation of Denison Mines Corp. (TSX:DML, NYSE American: DNN).
The revised offering consists of up to 1,500,000 units of the Company at a price of C$3.00 per unit, for gross proceeds of up to C$4,500,000. Additionally, the Company will issue flow-through units (FT Units) at C$3.50 per FT Unit and charitable flow-through units (Charity FT Units) at C$4.55 per Charity FT Unit, with gross proceeds of up to C$5,000,000.
Red Cloud Securities Inc. is acting as the lead agent and sole bookrunner for the offering, with an option to sell up to an additional C$1,000,000 in any combination of units, FT Units, and Charity FT Units. Denison Mines, Foremost's largest shareholder, has indicated that it will participate in the offering to maintain its holdings at approximately 19.95% following the completion of the offering.
Each unit consists of one common share and one common share purchase warrant, while each FT Unit and Charity FT Unit consists of one flow-through share and one warrant. The warrants entitle the holder to purchase one common share of the Company at a price of C$4.00 at any time within 24 months of the closing date of the offering.
The Company intends to use the net proceeds from the offering primarily for exploration expenditures on its uranium properties in the Athabasca Basin in Saskatchewan, as well as for working capital and general corporate purposes. The gross proceeds from the issuance of the FT Shares will be used for Canadian exploration expenses and will qualify as "flow-through critical mineral mining expenditures."
In conclusion, Foremost Clean Energy's upsized private placement reflects the strong investor demand and strategic support from Denison Mines. The increased proceeds will enable the Company to advance its uranium exploration efforts in the Athabasca Basin and support its working capital and general corporate purposes. As the Company continues to grow and develop its uranium and lithium exploration projects, investors can expect to see further progress and potential value creation.
The revised offering consists of up to 1,500,000 units of the Company at a price of C$3.00 per unit, for gross proceeds of up to C$4,500,000. Additionally, the Company will issue flow-through units (FT Units) at C$3.50 per FT Unit and charitable flow-through units (Charity FT Units) at C$4.55 per Charity FT Unit, with gross proceeds of up to C$5,000,000.
Red Cloud Securities Inc. is acting as the lead agent and sole bookrunner for the offering, with an option to sell up to an additional C$1,000,000 in any combination of units, FT Units, and Charity FT Units. Denison Mines, Foremost's largest shareholder, has indicated that it will participate in the offering to maintain its holdings at approximately 19.95% following the completion of the offering.
Each unit consists of one common share and one common share purchase warrant, while each FT Unit and Charity FT Unit consists of one flow-through share and one warrant. The warrants entitle the holder to purchase one common share of the Company at a price of C$4.00 at any time within 24 months of the closing date of the offering.
The Company intends to use the net proceeds from the offering primarily for exploration expenditures on its uranium properties in the Athabasca Basin in Saskatchewan, as well as for working capital and general corporate purposes. The gross proceeds from the issuance of the FT Shares will be used for Canadian exploration expenses and will qualify as "flow-through critical mineral mining expenditures."
In conclusion, Foremost Clean Energy's upsized private placement reflects the strong investor demand and strategic support from Denison Mines. The increased proceeds will enable the Company to advance its uranium exploration efforts in the Athabasca Basin and support its working capital and general corporate purposes. As the Company continues to grow and develop its uranium and lithium exploration projects, investors can expect to see further progress and potential value creation.
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