Uranium Royalty Corp. Announces C $ 37 Million Funding
Do not distribute to US news agencies or broadcast in the United States.
VANCOUVER, British Columbia, May 4, 2021 (GLOBE NEWSWIRE) – Uranium Royalty Corp (TSX-V: URC, NASDAQ: UROY, “URC” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters, led by BMO Capital Markets, under which the underwriters have agreed to purchase, on a bought deal basis, 6,100,000 common shares (the “Common Shares”), at a price of C $ 4.10 per Common Share, for gross proceeds of approximately C $ 25 million (the “Offering”). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The offering is expected to close on or around May 20, 2021 and is subject to obtaining all necessary regulatory approvals by the company.
The net proceeds of the offering will be used to finance future purchases of U3O8, flow royalties and interest, and for working capital.
Insiders have indicated that they will participate in the purchase of common shares representing approximately 19% of the placement.
In conjunction with the bought deal transaction, URC is pleased to announce that it has received a letter of commitment for a C $ 12 million margin loan (the “Margin Loan”) from the Bank of Montreal. The margin loan will be subject to an interest rate of 12 month USD LIBOR plus 5.50% per annum and customary margin requirements.
The common shares will be offered by way of a simplified prospectus in all provinces and territories of Canada, except Quebec, and may also be offered by private placement in the United States.
The securities offered have not been registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the requirements of recording. This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of the securities in any jurisdiction in which such an offer, solicitation or sale would be illegal.
About Uranium Royalty Corp.
Uranium Royalty Corp. is a pure-play uranium royalty company that aims to gain exposure to uranium prices by making strategic investments in uranium holdings, including royalties, flows, borrowings and equity investments in uranium companies, as well as holdings of physical uranium. The Company’s strategy recognizes the inherent cyclicality of valuations based on uranium prices, including the impact of this cyclicality on the availability of capital in the uranium industry and the current historically low price environment. uranium. The Company intends to execute its strategy by leveraging the in-depth industry knowledge and expertise of its management team and board of directors to identify and assess investment opportunities in the industry. uranium industry. The management and board of directors of the company include individuals with decades of combined experience in the uranium and nuclear energy industries, including specific expertise in mine finance, identification and project appraisal, mining development and uranium sales and trading.
For more information, please contact:
Scott Melbye – Managing Director
Telephone: +1 (952) 303-1778
Email: [email protected]
The head office:
1030 West Georgia Street, Suite 1830,
Vancouver, British Columbia, V6E 2Y3
Toll free: 1.855.396.8222
Email: [email protected]
Certain statements contained in this press release may constitute “forward-looking statements”, including those regarding the expected completion of proposed acquisitions, the uranium markets and expectations regarding projects in which the Company has an interest. Forward-looking statements are statements that deal with or discuss activities, events or developments that the company anticipates or anticipates may occur in the future. When used in this press release, words such as “believes”, “expects”, “anticipates”, “anticipates”, “will”, “believes”, “intends” “should” , “Could”, “may” and the like. Similar terminology is used to identify these forward-looking statements. Forward-looking statements reflect the current expectations and beliefs of the management of the company. These statements involve material uncertainties, known and unknown risks, uncertainties and other factors and, therefore, the actual results, performance or achievements of the Company and its industry may differ materially from those implied by such statements. prospective. They should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether these results will be achieved or not. A number of factors could cause actual results to differ materially from these forward-looking statements, including, without limitation, any failure to meet the conditions of completion of the transaction or to complete the transactions as expected to achieve production. , the risks inherent in royalty companies, the volatility of uranium prices, the risks associated with the operators of the projects underlying the existing and proposed interests of the Company and the other risks described in the Annual Information Form and other filings with Canadian securities regulators and the United States Securities and Exchange Commission. These and other risks could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying on forward-looking statements and the Company does not undertake to revise them publicly to reflect subsequent events or circumstances, except as required by law.
Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of TSX-V) accepts responsibility for the adequacy or accuracy of this release.