F3 Announces C$7.5 Million Bought Deal Private Placement

Rhea-AI Summary

F3 Uranium Corp. has announced a C$7.5 million bought deal private placement with Red Cloud Securities Inc. The company will sell 13,392,857 flow-through units at C$0.56 per unit, including common shares and warrants. Additional FT units may be offered through the Over-Allotment Option and President's List. The Offering is set to close on May 23, 2024, with proceeds intended for exploration in the Athabasca Basin.

Positive

• F3 Uranium Corp. successfully secured C$7.5 million in gross proceeds through the bought deal private placement.

• The Company's agreement with Red Cloud Securities Inc. demonstrates investor confidence in F3 Uranium Corp.'s projects.

• The proceeds from the Offering will enable the Company to fund exploration activities in the Athabasca Basin, contributing to potential future growth and development.

Negative

• The Company will pay a 5.5% cash commission to the Underwriters, which will impact the net proceeds from the Offering.

• The restricted period for common shares issued in the Offering may limit immediate trading opportunities for investors.

• Potential dilution may occur for existing shareholders if the Underwriters exercise their warrants to acquire Common Shares.

Kelowna, British Columbia--(Newsfile Corp. - May 1, 2024) - F3 Uranium Corp. (TSXV: FUU) (OTCQB: FUUFF) ("F3 Uranium" or the "Company") is pleased to announce that it has entered into an agreement with Red Cloud Securities Inc., as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase for resale 13,392,857 flow-through units of the Company (each, a "FT Unit") at a price of C$0.56 per FT Unit (the "Offering Price") on a "bought deal" basis in a private placement for gross proceeds of C$7,500,000 (the "Underwritten Offering").

Each FT Unit will consist of one common share of the Company (each, a "Common Share") to be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) (each, a "FT Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant shall entitle the holder to purchase one Common Share at a price of C$0.56 at any time on or before that date which is 24 months after the Closing Date (as defined below).

The Company will grant to the Underwriters an option, exercisable up to 48 hours prior to the Closing Date, to purchase for resale up to an additional 2,008,929 FT Units at the Offering Price for additional gross proceeds of up to C$1,125,000 (the "Over-Allotment Option", and together with the Underwritten Offering, the "Offering").

The Company will have the right to include a list of subscribers to purchase up to 892,857 FT Units at the Offering Price for gross proceeds of up to C$500,000 under the Offering (the "President's List"). The President's List will be allocated under the Over-Allotment Option and, for greater certainty, all purchasers under the Over-Allotment Option will receive FT Units on the terms of the Offering and subject to certain resale restrictions as described below.

A total of 8,928,571 FT Units under the Underwritten Offering, representing gross proceeds of up to C$4,999,999.20, will be offered by way of the "listed issuer financing" exemption under Part 5A under National Instrument 45-106 - Prospectus Exemptions ("NI 45-106") in all the provinces of Canada with the exception of Quebec (the "Selling Jurisdictions"). The Common Shares issuable pursuant to the sale of these FT Units are expected to be immediately freely tradeable under applicable Canadian securities legislation if sold to purchasers resident in Canada. The remaining FT Units to be sold under the Offering, including the FT Units sold under the Over-Allotment Option and President's List, will be offered by way of the "accredited investor" and "minimum amount investment" exemptions under NI 45-106 in the Selling Jurisdictions. The Common Shares issuable from the sale of such FT Units will be subject to a restricted period in Canada ending on the date that is four months plus one day following the closing of the Offering as defined in Subsection 2.5(2) of Multilateral Instrument 45-102 - Resale of Securities.

The Offering is expected to close on May 23, 2024 (the "Closing Date"). The Company will pay to the Underwriters a cash commission of 5.5% of the gross proceeds raised in respect of the Offering (the "Underwriters' Commission"). In addition, the Company will issue to the Underwriters warrants of the Company (each warrant, a "Broker Warrant"), exercisable for a period of 24 months following the Closing Date, to acquire in aggregate that number of Common Shares which is equal to 5.5% of the number of FT Units sold under the Offering at an exercise price equal to C$0.56 per Common Share. All FT Units sold to purchasers under the President's List will be subject to a reduced Underwriters' Commission of 2.75% and that number of Broker Warrants equal to 2.75% of the number of FT Units sold to purchasers under the President's List.

The proceeds of the Offering will be used by the Company to fund exploration of the Company's projects in the Athabasca Basin.

There is an offering document related to the Offering that will be accessed under the Company's profile at www.sedarplus.ca and at the Company's website at www.f3uranium.com. Prospective investors should read this offering document before making an investment decision.

About F3 Uranium Corp.

F3 Uranium is a uranium project generator and exploration company, focusing on projects in the Athabasca Basin, home to some of the world's largest high grade uranium discovery. F3 Uranium currently has 18 projects in the Athabasca Basin. Several of F3's projects are near large uranium discoveries including Triple R, Arrow and Hurricane.

The TSX Venture Exchange and the Canadian Securities Exchange have not reviewed, approved or disapproved the contents of this press release, and do not accept responsibility for the adequacy or accuracy of this release.

F3 Uranium Corp.
750-1620 Dickson Avenue
Kelowna, BC V1Y9Y2

Contact Information
Investor Relations
Telephone: 778 484 8030
Email: ir@F3uranium.com

ON BEHALF OF THE BOARD

"Dev Randhawa"
Dev Randhawa, CEO

Cautionary Statement: F3 Uranium Corp.

This press release contains "forward-looking information" within the meaning of applicable Canadian and United States securities laws, which is based upon the Company's current internal expectations, estimates, projections, assumptions and beliefs. The forward-looking information included in this press release are made only as of the date of this press release. Such forward-looking statements and forward-looking information include, but are not limited to, statements concerning the Company's expectations with respect to the Offering; the use of proceeds of the Offering; completion of the Offering and the date of such completion. Forward-looking statements or forward-looking information relate to future events and future performance and include statements regarding the expectations and beliefs of management based on information currently available to the Company. Such forward-looking statements and forward-looking information often, but not always, can be identified by the use of words such as "plans", "expects", "potential", "is expected", "anticipated", "is targeted", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements or forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements or forward-looking information, including, without limitation, risks and uncertainties relating to: general business and economic conditions; regulatory approval for the Offering; completion of the Offering; changes in commodity prices; the supply and demand for, deliveries of, and the level and volatility of the price of uranium and other metals; changes in project parameters as exploration plans continue to be refined; costs of exploration including labour and equipment costs; risks and uncertainties related to the ability to obtain or maintain necessary licenses, permits or surface rights; changes in credit market conditions and conditions in financial markets generally; the ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors; the impact of value of the Canadian dollar and U.S. dollar, foreign exchange rates on costs and financial results; market competition; exploration results not being consistent with the Company's expectations; changes in taxation rates or policies; technical difficulties in connection with mining activities; changes in environmental regulation; environmental compliance issues; other risks of the mining industry; and risks related to the effects of COVID-19. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that could cause results not to be as anticipated, estimated or intended. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedarplus.ca. The forward-looking statements included in this press release are made as of the date of this press release and F3 Uranium Corp. disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/207680

FAQ

What is the total gross proceeds from the private placement?

The private placement is expected to generate C$7.5 million in gross proceeds for F3 Uranium Corp.

When is the Offering set to close?

The Offering is scheduled to close on May 23, 2024.

What will the proceeds from the Offering be used for?

The funds raised through the private placement will be utilized for exploration activities in the Athabasca Basin.

Where can prospective investors access the offering document related to the Offering?

The offering document can be accessed under the Company's profile at www.sedarplus.ca and at the Company's website at www.f3uranium.com.