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Calgary AB – Traction Uranium Corp. (the “Company” or “Traction”) (CSE: TRAC; OTCQB: TRCTF; FRA: Z1K) is pleased to announce that, further to its news release of April 12, 2023, which announced a private placement offering of units and flow-through units of the Company of up to $5,000,000 (the “Offering”), it has closed the first tranche of the non-brokered private placement (the “First Tranche Private Placement”) issuing 3,050,000 units of the Company (each, a “Unit”) at a price of $0.40 per Unit for aggregate gross proceeds of $1,220,000.
Each Unit consists of one (1) common share in the capital of the Company (each, a “Share”) and one-half (1/2) common share purchase warrant, whereby each whole common share purchase warrant (each, a “Warrant”) is exercisable into one (1) Share at an exercise price of $0.55 until April 20, 2025, being the date that is two years from the date of issue.
In connection with closing of the First Tranche Private Placement, the Company paid cash finder’s fees in the aggregate of $57,900 and issued a total of 144,750 finder’s warrants (each, a “Finder’s Warrant”). Each Finder’s Warrant is exercisable into one (1) Share at an exercise price of C$0.55 until April 20, 2025, being the date that is two years from the date of issue. The net proceeds from the First Tranche Private Placement are intended to be used for general and administrative expenditures as well as non-flow-through exploration and evaluation expenditures.
In accordance with the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions(“NI 45-106”), the Units issued in connection with the First Tranche Private Placement are not subject to a hold period pursuant to applicable Canadian securities laws.
The Offering remains expected to close on or about May 12, 2023, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any U.S. state securities laws, and may not be offered or sold in the United States absent registration or available exemptions from such registration requirements. This press release does not constitute an offer to acquire securities in any jurisdiction.
About Traction Uranium Corp.
Traction Uranium Corp. is in the business of mineral exploration and the development of discovery prospects in Canada, including its three flagship uranium projects in the world-renowned Athabasca Region. The Company invites you to find out more about its exploration-stage activities across Canada’s Western region at www.tractionuranium.com.
On Behalf of The Board of Directors
Chief Executive Officer
+1 (604) 561 2687
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information that is based on the Company’s current beliefs or assumptions as to the outcome and timing of such future events.
In particular, this press release contains forward-looking information relating to, among other things, the First Tranche Private Placement, including the use of proceeds from the First Tranche Private Placement, as well as the anticipated timeline for closing of the Offering. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information, including the assumption that the Company will use the proceeds from the First Tranche Private Placement as anticipated and the assumption that the Company will close the Offering on the timeline expected. Although such statements are based on reasonable assumptions of the Company’s management, there can be no assurance that any conclusions or forecasts will prove to be accurate.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include the risk that the Company does not use the proceeds from the First Tranche Private Placement as currently expected, the risk that the Offering does not close on the timeline expected, risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined, risks relating to variations in grade or recovery rates, risks relating to changes in mineral prices and the worldwide demand for and supply of minerals, risks related to increased competition and current global financial conditions, access and supply risks, risks related to the Company’s reliance on key personnel, operational risks, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, title and environmental risks and risks relating to the failure to receive all requisite regulatory approvals. The forward-looking information contained in this release is made as of the date hereof, and the Company not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
The Canadian Securities Exchange has not approved nor disapproved the information contained herein.