Premier American Uranium Completes C$5.77 Million Private Placement

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TORONTO, May 07, 2024 (GLOBE NEWSWIRE) -- Premier American Uranium Inc. (“PUR”, the “Company” or “Premier American Uranium”) (TSXV: PUR) is pleased to announce that it has closed its previously announced private placement announced on April 11, 2024, pursuant to which the Company sold 2,353,981 subscription receipts of PUR (each, a “Subscription Receipt”) at a price of C$2.45 per Subscription Receipt (the “Offering Price”) for gross proceeds of C$5,767,253 (the “Offering”), which includes the exercise of the Agents’ upsize option. The Offering was conducted by a syndicate of underwriters, led by Red Cloud Securities Inc., as lead agent and sole bookrunner, and including PI Financial Corp. (collectively, the “Agents”).

Each Subscription Receipt entitles the holder thereof to automatically receive, upon satisfaction or waiver, as applicable, of certain escrow release conditions (the “Escrow Release Conditions”), one unit of PUR (a “Unit”). Each Unit will be comprised of one common share of PUR (each, a “Unit Share”) and one-half of one common share purchase warrant of PUR (each whole warrant, a “Warrant”). Each whole Warrant will entitle the holder to purchase one common share of PUR (each, a “Warrant Share”) at a price of C$3.50 until May 7, 2026.

The Escrow Release Conditions include the satisfaction of all conditions precedent (other than conditions precedent that, by their terms, cannot be satisfied until closing) to the completion of the pending transaction as announced by the Company in a press release dated March 20, 2024, pursuant to which the Company has agreed to acquire all of the issued and outstanding common shares of American Future Fuel Corporation (“AMPS”) by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia) (the “Arrangement”). Completion of the Arrangement is subject to, among other things, receipt of applicable regulatory approvals, court approvals, as well as the requisite approval of AMPS shareholders.

The proceeds of the Offering, net of the reasonable out-of-pocket expenses of the Agents, are being held in escrow and will not be released to PUR until the Escrow Release Conditions are satisfied or waived, as applicable. If the Escrow Release Conditions have not been satisfied or waived, as applicable, on or prior August 30, 2024, the aggregate Offering Price of the Subscription Receipts (plus any interest earned thereon) will be returned to the holders (net of any applicable withholding taxes), and such Subscription Receipts will be automatically cancelled and be of no further force and effect. Following the satisfaction or waiver, as applicable, of the Escrow Release Conditions, the net proceeds of the Offering are expected to be used to fund the proposed exploration programs for PUR’s projects as well as for working capital and general corporate purposes.