Puranium steps up Namibian uranium rush

Puranium Energy has secured close to N$20 million to advance its uranium prospecting efforts in Namibia, as activity in the sector peaked and the global price of uranium reached US$106 per pound last week.

Puranium Energy is focused on the uranium exploration of its 85% interest in seven exclusive prospecting licences (EPLs), totalling 93 514 hectares in the Erongo region, which accounts for approximately 8% of the world’s uranium production.

According to the Toronto-based company’s president and chief executive officer (CEO), Jason Bagg, the funds were secured in a private placement involving the issuance of 9 318 750 units generating US$745 500 (N$13,9 million) in proceeds.

Additionally, the company settled US$325 761 (N$6 million) of debt through a share-for-debt transaction, issuing 4 072 010 common shares, according to a report on miningandenergy.com.

Puranium closed its non-brokered private placement, issuing units consisting of a one common share and one-half common share purchase warrant.

“The warrants allow the holder to purchase an additional common share at US 12 cents within 36 months.

The offering is subject to a four-month-and-one-day statutory hold period,” the CEO says.

Insiders participated in the private placement, considered a related party transaction under multilateral instrument 61-101.

The report says the company intends to rely on exemptions from formal valuation and minority shareholder approval requirements.

As part of the closing, the company paid US$2 800 in cash finder’s fees and issued 35 000 finder’s warrants.

Proceeds from the offering will be allocated to exploration and general working capital purposes.

Meanwhile, certain aspects of the shares-for-debt transaction constitute a related party transaction, involving insiders.

Bagg notes that the company relies on exemption from valuation and minority shareholder approval requirements.

Meanwhile, Puranium also announced the non-renewal of two licences EPL 733 and EPL 7907, after completing initial exploration.

This came after the company had set targets to raise N$21 million, with gross proceeds of up to N$14,4 million and N$6,3 million for a debt settlement plan involving 4 187 500 common shares.

The company aims to utilise the funds for exploration activities and general working capital requirements, emphasising its strategic focus on advancing exploration in Namibia’s Erongo region, known for its uranium resources.

Namibia ranks among the top global producers of uranium, contributing approximately 5 613 metric tonnes of U308 in 2022.

– email: matthew@namibian.com.na

Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!