Mining
Tuesday, June 4th, 2024 4:14 pm EDT
Key Points
- Generation Uranium Inc. closed an oversubscribed private placement raising $1.25 million to define new drill targets on its Yath uranium property in Canada.
- The company believes Yath has substantial uranium mineralization potential based on historical results and will use the funds for exploration activities.
- Generation Uranium also signed marketing service agreements to raise awareness about the company with a total retainer of up to $860,000.
Generation Uranium Inc. has closed its oversubscribed non-brokered private placement of five million units at 25 cents per unit for total aggregate proceeds of $1.25-million. The final tranche of the private placement closed with the issuance of one million units, each consisting of one common share of the company and one common share purchase warrant, at a price of 25 cents per unit, for aggregate proceeds of $250,000. Each purchase warrant is exercisable into one common share at an exercise price of 45 cents per share at any time up to 24 months following the closing date. The common shares will remain restricted until Oct. 4, 2024.
Additionally, the company maintains a warrant acceleration option allowing Generation to accelerate the expiry date of the warrants if the daily trading price of the common shares on the TSX Venture Exchange is greater than 70 cents per common share for the preceding 10 consecutive trading days.
The private placement remains subject to receipt of all required approvals, including the approval of the TSX Venture Exchange, as well as execution of formal documentation.
Generation to commence exploration activities at its 100-per-cent-owned uranium project
With the oversubscribed private placement fully closed, Generation intends to use the net proceeds to help define new drill targets on its Yath project, a high-grade uranium property in Nunavut, Canada, and for general working capital.
Situated within the Yathked basin mining jurisdiction, the 85-square-kilometre (21,003-acre) Yath land package is situated along trend from the historical 43-million-pound Lac 50 uranium deposit being advanced, recently acquired by Atha Energy Corp. Historical grades at Yath conducted by Pan Ocean Oil Ltd. in the 1980s highlight the known uranium and secondary mineralization of the property.
Previous surface sampling includes recorded uranium content reaching up to 9.81 per cent, 3.95 per cent and 2.14 per cent U3O8 (triuranium octoxide) in surface boulders. Furthermore, field surveys conducted between 2012 and 2014 by Kivalliq Energy unveiled U3O8 values ranging from 1 per cent to 10 per cent, concentrated around fault lines and basin unconformities. Notable concentrations of uranium samples aligning with regional fault lines, as corroborated by a 2012 seismic line indicating a VGR trend, affirm the findings from the 1970s, underscoring the substantial uranium mineralization potential within the zone.
Generation believes in the untapped potential at Yath, as adequate diamond drilling was never conducted as a consequence of the downturn in uranium prices.
With global uranium demand and prices rising, the company believes Yath presents a critical opportunity to tap into potential uranium reserves in a Tier 1 mining jurisdiction and ensure the sustainable future in world energy markets.
Marketing campaign service agreement enacted
The company has entered into a service agreement with White Rabbit Projects Pte. Ltd. dated May 31, 2024, pursuant to which White Rabbit will facilitate a marketing campaign on behalf of the company for a total retainer of up to $460,000 (U.S.) over a term of up to six months or until the retainer is otherwise depleted. White Rabbit delivers communication strategy, capital markets services and investor relations co-ordination efforts with a core focus on corporate brand building and awareness.
As part of the White Rabbit agreement, White Rabbit will onboard Native Ads Inc. to execute a comprehensive digital media advertising campaign on behalf of the company for a total retainer of up to $400,000 (U.S.) over a term of up to six months or until the retainer is otherwise depleted. A significant portion of the budget outlay will be allocated to cost-per-click costs, media buying, content distribution and search engine marketing. The remaining budget will be allocated for content creation, Web development, advertising creative development, search engine optimization, campaign optimization, and reporting and data insights services. Native Ads is a full-service advertising agency based out of New York and Vancouver, B.C. Native Ads and its principal Jon Malach are arm’s length to the company and hold no interest, directly or indirectly, in the securities of the company or any right to acquire such an interest. The engagement of Native Ads is subject to the approval of the TSX Venture Exchange.
About Generation Uranium Inc.
The company is a natural resource company engaged in the exploration and development of mineral properties. The company holds a 100-per-cent interest in the Yath uranium project, located in the territory of Nunavut.
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