3 Financings You Need to Know About This Week (May 3-7)

May 7, 2021 03:14 PM PST

Uranium is having a moment, and companies are leveraging the bullish market to raise funds. Here, we bring you two prominent uranium companies, and one base metals miner betting on an under-the-radar mineral called wollastonite.

1. Uranium Participation Corp. (TSX: U)

  • Gross Proceeds: $70 million
  • Sector: Uranium
  • Units issued: 13.46 million
  • Type: Common shares
  • Price: $5.20
  • Warrants: None
  • Agents: Cormark Securities Inc., Cantor Fitzgerald Canada Corp.
  • Use of Proceeds: Uranium purchases

Physical uranium investment company Uranium Participation Corp. (TSX: U) announced a $50 million private placement on Monday, and upsized it to $70 million the following day.

The company now plans to issue 13.46 million common shares at $5.20 each through a deal co-led by Cormark Securities Inc. and Cantor Fitzgerald Canada Corp.

Uranium Participation says the proceeds will be used for its bread and butter: the purchase of uranium oxide in concentrates and uranium hexafluoride.

The financing comes amid a bull market for uranium, and shares of the company are up 33 cents since announcing the deal.

2. Fission Uranium Corp. (TSX: FCU)

  • Gross Proceeds: $30 million
  • Sector: Uranium
  • Units issued: 50 million
  • Type: Special units
  • Price: $0.60
  • Warrants: Half; $0.85; three years
  • Agents: Eight Capital, Sprott Capital Partners
  • Use of Proceeds: Ongoing development

Uranium explorers Fission Uranium Corp. (TSX: FCU) announced a $30 million bought deal co-led by Eight Capital and Sprott Capital Partners on Monday.

The company plans to issue 50 million special units at $0.60 each, with each including a common share and a half warrant. Full warrants will be exercisable at $0.85 for three years after the deal closes.

Fission intends to use the proceeds for ongoing development of its Triple R project on the Athabasca Basin, also home to Cameco's Cigar Lake mine, the biggest uranium mine in the world.

Shares of the company have dropped 3 cents since announcing the offering to close at 66 cents on Friday.

3. Vertical Exploration Inc. (TSX-V: VERT)

  • Gross Proceeds: $4.05 million
  • Sector: Base metals
  • Units issued: 10 million
  • Type: Common shares
  • Price: $0.15
  • Warrants: None
  • Agents: Non-brokered
  • Use of Proceeds: Ongoing exploration 

Vertical Exploration Inc. (TSX-V: VERT), a junior mining company exploring for a mineral called wollastonite, announced a $4.05 million non-brokered private placement on Tuesday. 

The company plans to issue 10 million common shares at $0.15 each. Proceeds will be used for development of the company's St. Onge project in Quebec. 

Wollastonite is a strong, flexible mineral valuable in construction, paint and coatings, plastics, and other applications. In addition to advancing St. Onge through toward production, Vertical also conducts research and development on the mineral.

Shares of the company are up half a cent since announcing the deal, closing at 17 cents per share on Friday.

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