ESO Uranium (ESO-V) is diluting share value to raise funds to further exploration at its Canadian projects.
Vancouver-based ESO is offering up to 10 million units at a price of 60 per unit, with each unit consisting of one common share and one share purchase warrant to raise $6 million.
The warrants will let holders buy one common share for 75 for two-years from the closing date of the financing.
The Offering is being made through Union Securities, with ESO paying Union a 7% cash commission, a $10,000 work fee, and issuing to Union an option to purchase additional units equal to 10% of the number of Units sold.
Additionally Union can get a 3% cash commission on proceeds from the exercise of any of those warrants.
ESO says the proceeds will go into exploration in northern Saskatchewan and northern Ontario. ESO has roughly 3,931 sq. km. of uranium prospective ground in Saskatchewan’s Athabasca Basin. It also has a 100% interest in the Mikwan gold project, which covers roughly 107 sq. km. in northern Ontario. The area represents the western extension of the Casa Berardi deformation zone.
In Toronto on Nov. 13, the company’s shares gravitated towards the offering price, falling off nearly 6%, or 4 to 63 on roughly 185,000 shares traded. ESO currently has roughly 34 million shares outstanding.
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