Energy Fuels Inc. (TSX:EFR) and Virginia Energy Resources Inc. (TSXV:VUI) announced that Virginia Energy proposes to issue and sell, by way of a non-brokered private placement financing, 14,285,714 common shares in the capital of Virginia Energy at $0.42 per Common Share for expected aggregate gross proceeds of up to $6,000,000.
As quoted in the press release:
The lead investors in the capital raise are Energy Fuels and Sprott Resource Corp. (“Sprott”).
Energy Fuels CEO Stephen Antony said:
The Coles Hill uranium project is the largest uranium development project in the US and has strong technical and economic merit. The US is currently the biggest consumer of uranium in the world, yet we import more than 90% of our supply requirements. We are pleased to partner with Virginia Energy and help advance the Coles Hill project toward becoming a major domestic uranium producer that is committed to the highest standards of operational safety and environmental protection. We are also confident that the Coles Hill project has the potential to create significant economic value for the state of Virginia and generate strong investment returns for Virginia Energy shareholders.