F3 Announces Closing of Private Placement for Aggregate Gross Proceeds of C$10 Million

Rhea-AI Summary

F3 Uranium Corp. (TSXV: FUU) (OTCQB: FUUFF) has closed a 'bought deal' private placement, raising C$10,074,414.59. This includes full exercise of the Underwriters' over-allotment option. The Company sold 7,409,908 federal flow-through units (FFT Units) at C$0.5355 each, and 10,447,235 Saskatchewan flow-through units (SFT Units) at C$0.5845 each, totaling 17,857,143 FT Units at a blended price of C$0.5642 per FT Unit.

Red Cloud Securities Inc. led the underwriting, with Canaccord Genuity Corp., Haywood Securities Inc., SCP Resource Finance LP, and Eight Capital also participating. Each FT Unit includes one common share and half a common share purchase warrant, exercisable at C$0.56 until May 30, 2026.

The offering consists of two tranches: C$4,999,999.74 raised under 'listed issuer financing' exemption, and the rest under 'accredited investor' and 'minimum amount investment' exemptions. A commission of C$540,342.80 was paid to the Underwriters, along with 957,589 Broker Warrants. Funds will support exploration in the Athabasca Basin. Final TSX Venture Exchange approval is pending.

Positive

• Successfully raised C$10,074,414.59 through a 'bought deal' private placement.
• Full exercise of the Underwriters' over-allotment option.
• High investor interest as indicated by the full allotment.
• Specific use of proceeds for exploration in the Athabasca Basin, indicating targeted investment.
• The offering led by reputable firms such as Red Cloud Securities Inc.

Negative

• Commission of C$540,342.80, reducing the net proceeds available for the Company.
• Issued 957,589 Broker Warrants, potentially diluting existing shareholders.
• Final approval from TSX Venture Exchange still pending, adding regulatory uncertainty.
• Common Shares from half of the FT Units are subject to a restricted period until October 1, 2024, limiting immediate liquidity.

Kelowna, British Columbia--(Newsfile Corp. - May 30, 2024) - F3 Uranium Corp. (TSXV: FUU) (OTCQB: FUUFF) ("F3 Uranium" or the "Company") is pleased to announce the closing of its previously announced "bought deal" private placement (the "Offering") for aggregate gross proceeds of C$10,074,414.59, which includes the full exercise of the Underwriters' over-allotment option. Under the Offering, the Company sold 7,409,908 federal flow-through units of the Company (the "FFT Units") at a price of C$0.5355 per FFT Unit and 10,447,235 Saskatchewan flow-through units of the Company (the "SFT Units", and together with the FFT Units, the "FT Units") at a price of C$0.5845 per SFT Unit, for an aggregate of 17,857,143 FT Units at a blended price of C$0.5642 per FT Unit on a "bought deal" basis.

Red Cloud Securities Inc. acted as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters that included Canaccord Genuity Corp., Haywood Securities Inc., SCP Resource Finance LP and Eight Capital (collectively, the "Underwriters").

Each FT Unit consists of one common share of the Company (each, a "Common Share") 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 May 30, 2026.

A total of 8,928,571 FT Units under the Offering, representing gross proceeds of C$4,999,999.74, were 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 immediately freely tradeable under applicable Canadian securities legislation if sold to purchasers resident in Canada. The remaining 8,928,572 FT Units sold under the Offering were 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 are subject to a restricted period in Canada ending on October 1, 2024.

In connection with the Offering, the Company paid to the Underwriters an aggregate cash commission of C$540,342.80, equal to 5.5% of the gross proceeds raised in respect of the Offering (except for gross proceeds raised from the sale of FT Units sold to purchasers on a president's list (the "President's List"), which were subject to a reduced 2.75% cash commission). The Company also issued to the Underwriters a total of 957,589 warrants of the Company (the "Broker Warrants"), equal to 5.5% of the number of FT Units sold pursuant to the Offering (except for those FT Units sold to purchasers on the President's List, which were subject to a reduced number of Broker Warrants equal to 2.75%). Each Broker Warrant entitles the holder thereof to purchase one Common Share at a price of C$0.56 at any time on or before May 30, 2026.

The proceeds of the Offering will be used by the Company to fund exploration of the Company's projects in the Athabasca Basin. The Offering remains subject to the final approval of the TSX Venture Exchange.

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 deposits. F3 Uranium currently has 20 projects in the Athabasca Basin. Several of F3's projects are near large uranium deposits, 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 and the use of proceeds of the Offering. 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; 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/211104

FAQ

What is the total amount raised by F3 Uranium Corp. in its private placement?

F3 Uranium Corp. raised C$10,074,414.59 through its 'bought deal' private placement.

What was the price of each federal flow-through unit (FFT Unit) sold by F3 Uranium Corp.?

Each federal flow-through unit (FFT Unit) was sold at a price of C$0.5355.

When do the warrants issued by F3 Uranium Corp. expire?

The warrants issued expire on May 30, 2026.

Which underwriters participated in F3 Uranium Corp.'s private placement?

Red Cloud Securities Inc., Canaccord Genuity Corp., Haywood Securities Inc., SCP Resource Finance LP, and Eight Capital were the underwriters.

What is the purpose of the funds raised by F3 Uranium Corp.?

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

What is the restricted period for the Common Shares from half of the FT Units sold?

The restricted period ends on October 1, 2024.