- CanAlaska Uranium (CVV) has closed the first tranche of its non-brokered private placement
- During the tranche, the company issued 2.6 million flow-through units and 2.2 million non-flow-through units, for just over C$1 million in total proceeds
- CanAlaska expects to raise approximately $1.2 million in proceeds, a goal which it may achieve in tranches to come
- The company will use the proceeds for work programs on its exploration properties, and for general working capital
- CanAlaska Uranium (CVV) is up 8.11 per cent and is currently trading for 20 cents per share
CanAlaska Uranium (CVV) has closed the first tranche of its non-brokered private placement.
The uranium company first announced its plans for a private placement financing on October 15. However, at the time, CanAlaska only intended to raise total gross proceeds of up to C$600,000.
Four days after the first announcement, the company declared that it would be doubling its private placement, to allow for up to $1.2 million in proceeds. This decision was reportedly in response to increased demand from CanAlaska’s existing shareholders.
In the first tranche of the private placement, the company issued flow-through units at $0.22 each, and non-flow-through units at $0.20 each.
Each flow-through unit contained one flow-through common share and one warrant. Each non-flow-through unit contained one non-flow-through common share and one warrant.
The 2,682,136 flow-through units and 2,211,000 non-flow-through units issued through the tranche produced total proceeds of $1,032,269.92.
CanAlaska is likely to raise the remaining balance for its goal of $1.2 million in proceeds in the tranches to come. While the company did not specify how many tranches its financing will have, it has yet to issue any flow-through charity units, which it mentioned in its previous announcements.
The charity units will be sold at a price of $0.26 each, and will contain one flow-through common share and one warrant.
All warrants for flow-through, non-flow-through, and charity units will allow the holders to buy one non-flow-through common share at $0.28. This can occur within a period of two years.
CanAlaska will use the proceeds of the flow-through units and charity units for work programs on the company’s exploration properties. Proceeds from the sale of non-flow-through units will be used for general working capital.
CanAlaska Uranium (CVV) is up 8.11 per cent and is trading for 20 cents per share, as of 2:43pm EST.