Azincourt closes $6.4M first tranche of financing

Sep 29, 2021

2021-09-29 12:27 ET – News Release


Mr. Alex Klenman reports


Azincourt Energy Corp. has closed the first tranche of its non-brokered private placement. Under the first tranche, the company raised $6,405,000 from the sale of the following:


  • 60,805,988 units of the company at a price of seven cents per unit;
  • 10,933,459 flow-through units of the company at a price of 7.5 cents per flow-through unit;
  • 14,285,714 charity flow-through units sold to charitable buyers at a price of 9.3 cents per charity flow-through unit.


The final tranche of the $7.6-million offering is fully subscribed, and the company anticipates the closing taking place in the coming weeks.

Red Cloud Securities Inc. is acting as a finder in connection with the offering.

Each unit consists of one common share of the company and one common share purchase warrant. Each FT unit and each charity FT unit consists of one common share of the company to be issued as a flow-through share (within the meaning of the Income Tax Act (Canada)) and one warrant. Each warrant entitles the holder thereof to purchase one common share of the company at a price of 10 cents at any time before Sept. 29, 2024.

The gross proceeds from the issuance of the FT shares will be used for Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)), which will be renounced with an effective date of no later than Dec. 31, 2021, to the purchasers of the FT shares in an aggregate amount not less than the gross proceeds raised from the issue of the FT shares. If the qualifying expenditures are reduced by the Canada Revenue Agency, the company will indemnify each subscriber of FT shares for any additional taxes payable by such subscriber as a result of the company’s failure to renounce the qualifying expenditures. It is expected that expenditures will largely be focused on the upcoming 30-to-35-hole, 7,000-metre drill program at the East Preston uranium project, located in the western Athabasca basin, Saskatchewan, Canada.

The net proceeds from the sale of units will be used primarily for: the continued development of the company’s East Preston uranium project; working capital; and general corporate purposes.

In connection with the closing of the first tranche of the offering, the company: paid finders’ fees totalling $422,045; paid advisory fees totalling $69,680; and issued a total of 6,593,437 finders’ warrants of the company. Each finder’s warrant is exercisable into one common share of the company at a price of seven cents at any time before Sept. 30, 2024. The unit shares, FT shares, warrant shares and any common shares that are issuable from any finders’ warrants will be subject to a hold period ending on Jan. 30, 2022, in accordance with applicable securities laws.

About Azincourt Energy Corp.

Azincourt Energy is a Canadian-based resource company specializing in the strategic acquisition, exploration and development of alternative energy/fuel projects, including uranium, lithium and other critical clean-energy elements. The company is currently active at the East Preston uranium project (joint venture) in the Athabasca basin, Saskatchewan, Canada, and the Escalera Group uranium-lithium project, located on the Picotani Plateau in southeastern Peru.

We seek Safe Harbor.

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