Standard Uranium Closes Oversubscribed C$4.5M Public Offering

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VANCOUVER, British Columbia, June 26, 2020 (GLOBE NEWSWIRE) -- Standard Uranium Ltd. (“Standard Uranium” or the “Company”) (TSX-V: STND) is pleased to announce that it has closed its previously announced short form prospectus offering (the “Offering”) and has raised gross proceeds of C$4,500,000 through the issuance of 9,613,500 of units (“Units”) and 11,715,000 flow-through units (“FT Units”), including C$500,000 worth of Units and FT Units issued pursuant to the exercise by the agents of the over-allotment option.

Each Unit was offered at a price of C$0.20 per Unit and is composed of one common share (“Share”) in the capital of the Company and one-half of one Share purchase warrant (“Warrant”). Each FT Unit was offered at a price of C$0.22 per FT Unit and composed of one Share issued on a flow-through basis (“FT Share”) and one half of one Warrant. Each whole Warrant will be exercisable at a price of C$0.30 per Warrant for a period of thirty-six (36) months from the date of issuance, subject to an accelerated expiry (the “Acceleration”) in the event the Shares close at or above C$0.60 on the TSX Venture Exchange (the “Exchange”) for ten (10) consecutive trading days.

The Offering was conducted by a syndicate of agents led by Red Cloud Securities Inc. (“Red Cloud”) and including Eight Capital (collectively, the “Agents”). The Agents received a total cash fee of C$197,479.00 in connection with their services provided under the Offering. As additional compensation, the Agents were granted 931,750 broker warrants (“Broker Warrants”). Each Broker Warrant is exercisable into one Unit at a price of C$0.20 per Broker Warrant for a period of thirty-six months from the date of issuance.

Eventus Capital Corp. was appointed as special advisor to the Company in connection with the Offering.

The net proceeds raised under the Unit offering will be used for the exploration and development of the Company’s Davidson River Project and for working capital purposes. Proceeds of the Offering from the sale of FT Shares underlying the FT Units will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act (Canada) and "flow through mining expenditures" as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2020, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.