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U3O8 Corp closes $3m financing

11th January 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canada-based U3O8 Corp has closed a $3.16-million financing, which it would use to further develop its flagship Berlin uranium project, in Colombia, as well as for other corporate uses.

The company on Friday said it had completed the final tranche of its nonbrokered private placement for gross proceeds of $2.31-million through issuing 10.52-million units at 22c a unit.

Together with the first tranche, which closed on December 28, 2012, the offering raised total proceeds of $3.16-million through issuing 14.37-million units.

Each unit consisted of one common share of U3O8 Corp and half of one common share purchase warrant. Each whole warrant entitles the holder to buy one share at 30c a share for a period of two years.

The net proceeds will be used to fund ongoing work building on the positive preliminary economic assessment recently announced on U3O8 Corp's initial deposit at Berlin, in Colombia, for its exploration projects in Argentina and Guyana, and also for general corporate purposes.

The company reported insiders of U3O8 Corp had bought, directly or indirectly, about $2.5-million of the offering.

The company’s TSX-listed stock closed down 1.82% at 27 Canadian cents apiece on Friday.

Edited by Creamer Media Reporter

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