18:46:41 EDT Mon 17 Jun 2019
Enter Symbol
or Name

IsoEnergy Ltd
Symbol C : ISO
Shares Issued 55,191,068
Close 2018-12-20 C$ 0.42
Recent Sedar Documents

IsoEnergy closes $5.5-million bought deal

2018-12-20 13:50 ET - News Release

Mr. Craig Parry reports


IsoEnergy Ltd. has completed its previously announced private placement on a bought deal basis for total gross proceeds of approximately $5.5-million, an increase over the originally announced $4.5-million base deal due to strong demand for the offering.

The company has issued 9,173,200 flow-through shares of the company at a price of 44 cents per flow-through share for aggregate gross proceeds of approximately $4-million and 3,999,600 non-flow-through common shares at a price of 38 cents per common share for gross proceeds of approximately $1.5-million pursuant to an underwriting agreement entered into with Cormark Securities Inc., as lead underwriter, and PI Financial Corp. Prior to the closing of the offering, the underwriters partially exercised their option to increase the size of the offering from 10,765,000 securities to 13,172,800 securities.

Pursuant to the underwriting agreement, the company paid to the underwriters:

  1. A cash commission equal to 6 per cent of the gross proceeds of sales of the securities purchased by subscribers under the offering, other than those securities purchased by certain subscribers as agreed to between the company and the underwriters;
  2. Broker warrants exercisable to acquire the number of common shares as is equal to 6 per cent of the aggregate number of securities issued pursuant to the offering, other than those securities purchased by certain subscribers as agreed to between the company and the underwriters, with each broker warrant entitling the holder thereof to acquire one broker share at an exercise price of 38 cents per broker share until the date that is two years from the closing of the offering.

The proceeds received by the company from the sale of the flow-through shares will be used to incur Canadian exploration expenses (as such term is defined in the Income Tax Act (Canada)) on the company's projects in the Athabasca basin, Saskatchewan, including further drilling in proximity to the high-grade uranium mineralization recently discovered at the Hurricane zone on the Larocque East property. The qualifying expenditures will be renounced to the subscribers of flow-through shares with an effective date no later than Dec. 31, 2018, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of the flow-through shares. The net proceeds received by the company from the sale of the common shares will be used both for exploration on the company's projects and for general corporate purposes.

The offering is subject to final approval of the TSX Venture Exchange. All Securities issued in connection with the offering are subject to a four-month-and-one-day transfer restriction from the date of issuance.

Certain insiders (as such term is defined in the TSX-V corporate finance policies) of the company and NexGen Energy Ltd. participated in the offering. The participation of the insiders and NexGen is considered to be a related party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) (MI 61-101). The offering is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the offering nor the consideration to be received for those securities, in so far as the offering involves the insiders and NexGen, exceed $2.5-million. The company did not file a material change report more than 21 days before the expected closing of the offering, as the details of the offering and the participation therein by related parties of the company were not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons.

About IsoEnergy Ltd.

IsoEnergy is a well-financed uranium exploration and development company with a portfolio of prospective projects in the eastern Athabasca basin in Saskatchewan, Canada, and a historical inferred mineral resource estimate at the Mountain Lake uranium deposit in Nunavut. IsoEnergy is led by a board and management team with a track record of success in uranium exploration, development and operations. The company was founded and is supported by the team at its major shareholder, NexGen Energy.

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