GoviEx Uranium has cancelled the second tranche of the non-brokered private placement offering of units announced on February 13, 2020.
“The last two weeks have seen staggering volatility and devaluation in all sectors of the international equity markets and increasing economic uncertainty as governments and investors address the ongoing impact of the COVID-19 pandemic,” says Executive Chairman, Govind Friedland.
GoviEx announced on February 13, 2020, the successful close of the first tranche of the Private Placement, subject to final TSX Venture Exchange approval, for gross proceeds of approximately C$2.3 million based on the Private Placement offer price of C$0.15 per Unit.
However, the recent drastic and rapid devaluation of the equity market has resulted in a significant gap between the original Private Placement offering price and the Company’s current and prevailing market share price.
Consequently, the Company has decided to cancel the second tranche of the Private Placement currently underway and to wait for markets to settle before returning to the market for future financing.
“We remain firm in our resolve to weather these challenging times as we continue to believe in the strong underlying fundamentals of the uranium and nuclear industry, and deep value in GoviEx’s asset base”, states Friedland.
GoviEx intends to proceed with the planned updated pre-feasibility study for the Madaouela project in Niger, by end of May 2020.
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The PFS is targeting areas that are believed to reduce both operating and capital costs relative to the current technical report on the Madaouela Project, while at the same time reduce technical risk, with a focus on improving overall project economics.