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2864 chemin Sullivan Val-d’Or, Québec J9P 0B9 819.824.2808 (main)
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Uranium Valley Mines Announces Gross Proceeds of $718,750 Held in Trust Pending Closing of Private Placement Financing
Val-d’Or, Québec – January 31, 2017 – Uranium Valley Mines Ltd. (TSX-V:VZZ.H) (the “Company”) announces that gross proceeds of $718,749.75 are being held in trust pending closing of its previously announced non-brokered private placement offering (the “Financing”). Closing and issuance of securities by the Company under the Financing is subject to final acceptance by the TSX Venture Exchange of the Company’s graduation from NEX and reactivation as a Tier 2 Mining Issuer on the TSX Venture Exchange.
The Financing has been oversubscribed by 191,665 Units such that, on closing, the Company will issue 4,791,665 Units rather than up to 4,600,000 Units as previously announced on December 14, 2016. The Units have been purchased at a per Unit price of $0.15, each Unit consisting of one common share in the capital of the Company and one-half of one non-transferable common share purchase warrant, each whole warrant entitling the holder to purchase one common share in the capital of the Company at a per share price of $0.20 for 12 months following issuance of the securities.
In connection with the Financing, the Company will pay an aggregate $16,999.99 in cash finder’s fees and will issue an aggregate 107,333 common shares at a deemed per share price of $0.15 to various parties in satisfaction of an aggregate $16,099.95 in finder’s fees, representing 8% of the purchase proceeds received from subscribers introduced to the Company by the finders. The Company will also issue to the finders non-transferable warrants entitling the purchase of an aggregate 220,666 common shares at a per share price of $0.20 for 12 months following the date of issuance, representing 8% of the number of Units placed with the assistance of the finders.
In accordance with applicable securities legislation and the policies of the TSX Venture Exchange, all securities to be issued under the Financing, including securities to issued in satisfaction of finder’s fees, will be subject to a hold period of four months and one day from the date of issuance.
Net proceeds from the Financing will be used by the Company to meet its obligations under the Option Agreement with Golden Valley Mines Ltd., as previously announced on December 14, 2016, and for general corporate purposes.
For additional information, please contact:
Glenn J. Mullan, Chief Executive Officer Telephone: (819) 824-2808 - Head Office (514) 835-8384 - cell phone Email: [email protected]
Forward Looking Statements:
This news release contains certain statements that may be deemed “forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.