Latitude Uranium Announces C$5,000,000 Bought Deal Private Placement

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TORONTO, Nov. 08, 2023 (GLOBE NEWSWIRE) -- Latitude Uranium Inc. (“LUR” or the “Company”) (CSE: LUR, OTCQB: LURAF, FRA: EI1) is pleased to announce that it has entered into an agreement with Red Cloud Securities Inc. to act as co-lead underwriter and sole bookrunner on behalf of a syndicate of underwriters including Haywood Securities Inc., as co-lead underwriter (collectively, the “Underwriters”), pursuant to which the Underwriters will purchase for resale 22,727,273 flow-through units of the Company (each, a “FT Unit”) at a price of C$0.22 per FT Unit (the “Offering Price”) on a “bought deal” private placement basis for gross proceeds of C$5,000,000 (the “Offering”).

Each FT Unit will consist of one common share of LUR (each, a “FT Share”) to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) (“ITA”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.30 per Warrant Share at any time on or before the date which is 24 months after the closing date of the Offering.

The Company has granted the Underwriters an option to purchase for resale up to 4,545,455 additional FT Units at the Offering Price to raise additional gross proceeds of up to C$1,000,000 (the “Over-Allotment Option”). The Over-Allotment Option will be exercisable in whole or in part, up to 48 hours prior to the closing date of the Offering.

The proceeds from the issuance of FT Shares are expected to be used to incur eligible “Canadian exploration expenses” as defined in the ITA that will qualify as “flow-through critical mineral mining expenditures” as defined in the ITA and LUR will renounce the Canadian exploration expenses (on a pro rata basis) to each subscriber of FT Units with an effective date of no later than December 31, 2023 in accordance with the ITA. 

The Offering is scheduled to close on or about November 28, 2023, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the Canadian Securities Exchange. The securities issued pursuant to the Offering will be subject to a hold period of four-month and one day from the closing date of the Offering. The proceeds from the Offering are expected to be used for exploration of the Company’s Angilak Project in Nunavut and Central Mineral Belt properties in central Labrador.