Western Uranium & Vanadium Corp. Secures CAD $5 Million Financing

Western Uranium & Vanadium Corp. Closes First Tranche of Financing

Western Uranium & Vanadium Corp. (CSE: WUC) (OTCQX: WSTRF) is excited to reveal the successful closure of the first tranche of its brokered financing. This financing initiative was previously announced, setting the stage for substantial developments within the company.

Details of the Financing

In this first tranche, Western issued a total of 3,819,695 units, priced at CAD $1.32 per unit, resulting in approximate gross proceeds of CAD $5,041,998. Each unit comprises one common share and one purchase warrant, which is exercisable at CAD $1.78 for a duration of four years. The issuance of these units comes as the company strategically positions itself for future growth and opportunities.

Subscription Details and Regulations

The units were offered to Canadian purchasers under National Instrument 45-106 - Prospectus Exemptions and also to U.S. investors using available exemptions under the U.S. Securities Act of 1933. Investors located outside Canada were included under Ontario Securities Commission Rule 72-503, facilitating broader participation in this offering. Notably, a four-month statutory hold applies to securities issued to Canadian subscribers.

Related-Party Participation

In an interesting development, a director of the company participated by subscribing for 3,787 units, which qualifies as a related-party transaction as per Multilateral Instrument 61-101. The company relied on specific exemptions due to the limited impact of this participation on shareholders, ensuring compliance with regulatory requirements without extensive formal procedures.

Role of A.G.P. Canada Investment ULC

To facilitate this financing, Western engaged A.G.P. Canada Investment ULC as the sole agent and bookrunner. A commission amounting to 7% of the total proceeds from units placed was paid to A.G.P. Canada, highlighting a solid partnership in advancing the company's objectives.

Proceeds Utilization

Western intends to deploy the net proceeds from this offering towards expanding its production capabilities and enhancing mining operations at the Sunday Mine Complex. The funds will also support licensing and developing processing facilities, baseline data collection, and permitting for the San Rafael Project. Acquisitions of uranium and vanadium properties near existing sites and investments in mining equipment are also on the agenda.

Future Financing Prospects

Looking ahead, Western Uranium anticipates a second tranche of financing amounting to 346,971 units, potentially raising total gross proceeds to around CAD $5,500,000. This step is strategically timed to align with the brokerage processes of President’s List investors, and further announcements will be made once this tranche is closed.

Over-Allotment Option

The agreement also incorporates an over-allotment option allowing the placement of up to an additional 625,000 units, potentially boosting the company’s funds by CAD $825,000. This option must be exercised by December 23. Overall, this financing initiative is pivotal for Western Uranium's growth strategies and operational enhancements.

About Western Uranium & Vanadium Corp.

Western Uranium & Vanadium Corp. is focused on ramping up high-grade uranium and vanadium production, primarily from its Sunday Mine Complex, which is strategically located in the rich Uravan Mineral Belt. Their project pipeline also extends to several conventional sites in both Colorado and Utah. Furthermore, the Maverick Minerals Processing Plant is poised for licensing to implement advanced separation processes.

Frequently Asked Questions

What is the amount raised in the first tranche of financing?

The first tranche raised approximately CAD $5,041,998 through the issuance of 3,819,695 units.

What will be the proceeds from the financing used for?

The funds will be used for production expansion, mineral processing licensing, acquisition of properties, and general working capital.

Who acted as the sole agent for this financing?

A.G.P. Canada Investment ULC acted as the sole agent and bookrunner in this financing initiative.

Is there a related-party transaction in this offering?

Yes, a director of the company subscribed for 3,787 units, which is classified as a related-party transaction.

What is the second tranche expected to bring in?

The second tranche is expected to add up to 346,971 units, increasing total gross proceeds to approximately CAD $5,500,000.

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