Mr. Blake Steele reports
AZARGA URANIUM RECEIVES C$2.4 MILLION FROM WARRANT EXERCISES A
Azarga Uranium Corp. insiders and warrantholders have exercised 11,870,866 share purchase warrants, prior to their expiry on Aug. 15, 2018, for proceeds of approximately $2.4-million.
Further, as announced on July 5, 2017, Azarga Uranium settled $2.8-million of debt, inclusive of accrued interest, owing to three shareholders, including one insider, through the issuance of 11,269,243 common shares at a deemed price of 25 cents per common share. Additionally, as announced on April 19, 2018, the company executed a replacement earn-in agreement for its Kyzyl Ompul project in the Kyrgyzstani Republic, which is expected to generate $60,000 (U.S.) per month commencing Sept. 1, 2018, increasing to $229,000 (U.S.) per month commencing Jan. 1, 2019, with a final payment of $223,000 (U.S.) on Dec. 1, 2020. To date, the company has received the initial payment of $120,000 (U.S.) under this agreement.
Blake Steele, president and chief executive officer, stated: "The additional capital and conversion of debt significantly strengthens the company's balance sheet and ensures that the company is well positioned to execute its initiatives. The company intends to use the proceeds of the warrant exercise to continue advancing the Dewey Burdock in situ recovery project towards construction, to complete an updated and expanded resource estimate for the Dewey Burdock project, to continue to evaluate future in situ recovery development options at Gas Hills and for general working capital purposes."
About Azarga Uranium Corp.
Azarga Uranium is an integrated uranium exploration and development company that controls six uranium projects, deposits and prospects in the United States (South Dakota, Wyoming and Colorado) and the Kyrgyz Republic. The Dewey Burdock in situ recovery uranium project in South Dakota, which is Azarga Uranium's initial development priority, has received its Nuclear Regulatory Commission licence and draft Class III and Class V underground injection control (UIC) permits from the Environmental Protection Agency (EPA). Azarga Uranium is in the process of completing other major regulatory permit approvals necessary for the construction of the Dewey Burdock project, including the final Class III and Class V UIC permits from the EPA.
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