Nexus Announces Closing of Private Placement Financing

Rhea-AI Summary

Nexus Uranium Corp (CSE: NEXU) (OTCQB: GIDMF) has completed its non-brokered private placement, raising $2,082,301.20 through the issuance of 6,941,004 flow-through units at $0.30 per unit. Each unit includes one flow-through share and one warrant exercisable at $0.40 for 18 months after closing. The company paid $100,818.066 and issued 336,060 finders' warrants to certain finders. The proceeds will fund Canadian exploration expenses and flow-through critical mineral mining expenditures at the Cree East uranium project in the Athabasca Basin.

Positive

• Successful completion of $2.08M financing
• Funds secured for Cree East uranium project exploration
• Warrant inclusion provides potential additional future funding at $0.40/share

Negative

• Dilution of existing shareholders through new share issuance
• Additional costs of $100,818 and 336,060 warrants paid to finders

Vancouver, British Columbia--(Newsfile Corp. - December 12, 2024) - Nexus Uranium Corp. (CSE: NEXU) (OTCQB: GIDMF) (FSE: 3H1) (the "Company" or "Nexus") is pleased to announce that it has completed its previously announced non-brokered private placement of units the Company ("FT Units") An aggregate of 6,941,004 FT Units were issued at price of $0.30 per FT Unit to raise gross proceeds of $2,082,301.20 (the "Offering").

Each FT Unit consists of one common share of the Company (a "FT Share") to be issued as a "flow-through share" within the meaning of within the meaning of the Income Tax Act (Canada) (the "Tax Act") and one common share purchase warrant (a "Warrant") each of which is exercisable to acquire one common share for 18 months following closing at an exercise price of $0.40. The Company paid an aggregate of $100,818.066 and issued an aggregate of 336,060 warrants (the "Finders' Warrants") to certain finders involved in the Offering. The Finders' Warrants have the same terms as the Warrants.

Proceeds from the Offering will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Tax Act and "flow through critical mineral mining expenditures" as defined in subsection 127(9) of the Tax Act at the Cree East uranium project located in the Athabasca Basin.

About Nexus Uranium Corp.

Nexus Uranium Corp. is a multi-commodity development company focused on advancing the Cree East uranium project in the Athabasca Basin in addition to its precious metals portfolio that includes the Napoleon gold project in British Columbia and a package of gold claims in the Yukon. The Cree East project is one of the largest projects within the Athabasca Basin of Saskatchewan spanning 57,752 hectares (142,708 acres) and has seen over $20 million in exploration to date. The Napoleon project comprises over 1,000 hectares and prospective for multiple forms of gold mineralization, with exploration in the area dating back to the 1970s with the discovery of high-grade gold. The Yukon gold projects are comprised of almost 8,000 hectares of quartz claims prospective for high-grade gold mineralization with historical grab sampling highlights of 144 g/t gold.

FOR FURTHER INFORMATION PLEASE CONTACT:

Jeremy Poirier
Chief Executive Officer
info@nexusuranium.com

When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Although Nexus believes, in light of the experience of their respective officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in the forward-looking statements and information in this press release are reasonable, undue reliance should not be placed on them because the parties can give no assurance that such statements will prove to be correct. The forward-looking statements and information in this press release include, amongst others, the Company's use of proceeds of the Offering. Such statements and information reflect the current view of Nexus. Such statements and information reflect the current view of Nexus. There are risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this news release, including, but not limited to the assumption that the CSE will approve the Offering and the assumption that Company will be able to locate purchasers for the Offering.

These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including, but not limited to inherent risks associated with the mining industry and the results of exploration activities and development of mineral properties, stock market volatility and capital market fluctuations, general market and industry conditions, as well as those risk factors discussed in the Company's most recently filed management's discussion & analysis.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233580

FAQ

How much did Nexus Uranium (GIDMF) raise in its December 2024 private placement?

Nexus Uranium raised gross proceeds of $2,082,301.20 through the issuance of 6,941,004 flow-through units at $0.30 per unit.

What are the terms of the GIDMF warrants issued in the December 2024 financing?

The warrants are exercisable for 18 months following closing at an exercise price of $0.40 per common share.

How will GIDMF use the proceeds from its December 2024 private placement?

The proceeds will be used for Canadian exploration expenses and flow-through critical mineral mining expenditures at the Cree East uranium project in the Athabasca Basin.

What finder's fees did GIDMF pay for its December 2024 private placement?

Nexus paid $100,818.066 and issued 336,060 finders' warrants to certain finders involved in the offering.