Vancouver – Uranerz Energy (URZ-T, URZ-X) has plans for a major financing that will see intermediate uranium producer Denison Mines (DML-T, DNN-X) belly up and take a 9.9% interest in the junior.
The deal sees Uranerz selling 9.865 million units at US$2.40 apiece. Four million of the units will be sold through a brokered private placement while 5.865 million units will be non-brokered. Units consist of a common share plus a half-warrant with each full warrant exercisable at US$3.50 for two years.
Under its “strategic investment”, Denison is buying 5.865 million units from the non-brokered portion.
“The proceeds of this financing will help Uranerz achieve its goal of becoming a significant in-situ recovery (ISR) uranium producer in Wyoming,” said Glenn Catchpole, president and CEO of Uranerz in the announcement.
Net proceeds from the financing are earmarked for advancing the company’s Nichols Ranch and Hank ISR uranium properties in Wyoming’s Powder River Basin, and for planned drilling on its 81%-owned nearby Arkose property.
In late-2007 Uranerz submitted ISR mining licence and permit applications for Nichols Ranch and Hank and anticipates initial production by late 2010. Indicated resources of roughly 2.2 million contained lbs. U3O8 have been tabled for Nichols Ranch.
Shares of Uranerz were halted at $2.39 apiece (on the TSX) for the announcement, giving the company a $108-million market capitalization based on its 45.3-million shares outstanding. The stock has a 52-week trading range of $2.19-$4.40.
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