Mr. Warren Gilman of Queen's Road reports
QUEEN'S ROAD CAPITAL ANNOUNCES INVESTMENT IN ISOENERGY LTD.
Queen's Road Capital Investment Ltd. has entered into an agreement with IsoEnergy Ltd. whereby the company will invest $6-million (U.S.) in IsoEnergy by way of convertible debenture.
The convertible debenture will have a five-year term, carry an 8.5-per-cent coupon and be convertible into IsoEnergy common shares at a share price of 88 cents. The interest rate on the debenture will decrease to 7.5 per cent when IsoEnergy releases a positive independent preliminary economic assessment on the Hurricane zone at its flagship Larocque East property.
IsoEnergy is a uranium exploration and development company with a portfolio of projects in the eastern Athabasca basin in Saskatchewan, Canada. In August, 2018, IsoEnergy announced the discovery of high-grade uranium mineralization at Hurricane with its first drill hole on the property. During its recently completed winter 2020 drill program, IsoEnergy intersected very strong uranium mineralization in several drill holes, the best of which was 8.5 metres of 33.9 per cent triuranium octoxide in drill hole LE20-34, including 5.0 m of 57.1 per cent U3O8.
Warren Gilman, chairman and chief executive officer of the company, commented: "The Hurricane zone at Larocque East is shaping up as the most exciting uranium discovery since NexGen's discovery of Arrow in 2014. Queen's Road Capital is thrilled to support the next phase of development of the project, led by a tremendous team at IsoEnergy. With the summer 2020 drill program scheduled to start imminently, we look forward to following the growth and development of the discovery into an economic deposit."
Completion of the investment is subject to receipt of all required regulatory approvals, including the TSX Venture Exchange, and is expected to occur in August, 2020.
Queen's Road Capital is a leading financier to the global resource sector. The company is a resource-focused investment company, making investments in privately held and publicly traded resource companies. It is intended that the company will acquire and hold securities for both long-term capital appreciation and short-term gains, with a focus on convertible debt securities and resource projects in advanced development or production located in safe jurisdictions.
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