Consolidated Uranium Announces Private Placement By Labrador Uranium Inc. For Proceeds Of Up To C$7.0 Million

Consolidated Uranium Inc. (“ CUR ”, the “ Company ” or “ Consolidated Uranium ”) (TSXV: CUR) (OTCQB: CURUF) is pleased to announce that further to its press release on October 18, 2021 regarding the creation and planned spin-out (the “ Spin-Out ”) of Labrador Uranium Inc. (“ Labrador Uranium ” or “ LUR ”), LUR has entered into an agreement Red Cloud Securities Inc. to act as lead agent and sole bookrunner on behalf of a syndicate of agents (collectively, the “ Agents ”) in connection with a fully marketed private placement (the “ LUR Offering ”) of up to 10,000,000 subscription receipts of LUR (each, a “ Subscription Receipt ”) at a price of C$0.70 per Subscription Receipt (the “ Offering Price ”) for gross proceeds of up to C$7,000,000. The Agent will have an option, exercisable in full or in part up to 48 hours prior to the closing of the LUR Offering, to sell up to an additional 1,428,571 Subscription Receipts at the Offering Price for additional gross proceeds of up to C$1,000,000.
Philip Williams, President and CEO of Consolidated Uranium, commented “We could not be more thrilled with the enthusiastic response that we have received so quickly for Labrador Uranium. The financing announced today has seen higher demand than anticipated and is expected to be largely subscribed for by existing Consolidated Uranium institutional shareholders. I would highlight that all existing shareholders of CUR, on the effective date of the arrangement, will receive LUR shares though the pro-rata distribution of the 16 million LUR shares that CUR will be receiving for the transfer of its Moran Lake Project.”
Each Subscription Receipt entitles the holder thereof to automatically receive, upon satisfaction of certain escrow release conditions (the “ Escrow Release Conditions ”), one unit of LUR (a “ Unit ”). Each Unit shall be comprised of one class B common share of LUR (each, a “ Unit Share ”) and one-half of one common share purchase warrant of LUR (each whole warrant, a “ Warrant ”). Each Warrant will entitle the holder to purchase one class B common share of LUR (each, a “ Warrant Share ”) at a price of C$1.05 for a period of 24 months following the Escrow Release Date (as defined herein). The Escrow Release Conditions includes the satisfaction of all conditions precedent to the completion of the Spin-Out as well as receipt of conditional approval for the listing of LUR’s class B common shares on the Canadian Securities Exchange (the “ Listing ”).
The proceeds of the LUR Offering, net of 50% of the fee payable to the Agents and the reasonable out-of-pocket expenses of the Agents, will be held in escrow and not released to LUR unless the Escrow Release Conditions are satisfied by the deadline provided in the terms of the subscription receipt agreement that will govern the Subscription Receipts (the date of satisfaction of the Escrow Release Conditions being, the “ Escrow Release Date ”). Following the satisfaction of the Escrow Release Conditions, the net proceeds of the LUR Offering are expected to be used to fund the proposed exploration programs for the Moran Lake Project, the Central Mineral Belt Project and the Notakwanon Project as well as for working capital and general corporate purposes. The LUR Offering is scheduled to close on or around November 11, 2021.
About Consolidated Uranium Inc.
Consolidated Uranium Inc. (TSXV: CUR) (OTCQB: CURUF) was created in early 2020 to capitalize on an anticipated uranium market resurgence using the proven model of diversified project consolidation. To date, the company has acquired or has the right to acquire uranium projects in Australia, Canada, Argentina and the United States each with significant past expenditures and attractive characteristics for development. Most recently, the Company entered a transformational strategic acquisition agreement and alliance with Energy Fuels Inc (NYSE American: UUUU) (TSX: EFR), a leading U.S.-based uranium mining company, to acquire a portfolio of permitted, past-producing conventional uranium and vanadium mines in the Utah and Colorado. These mines are currently on stand-by, ready for rapid restart as market conditions permit, positioning CUR as a near-term uranium producer.