Standard Uranium Announces Davidson River Drill Program Private Placement for Up to C$3.0 Million & Share Consolidation

VANCOUVER, British Columbia, May 02, 2024 (GLOBE NEWSWIRE) -- Standard Uranium Ltd. (“Standard Uranium” or the “Company”) (TSX-V: STND) (OTCQB: STTDF) (Frankfurt: FWB:9SU) has determined, given the current strength in the global uranium sector, and uranium’s increasing importance as a green energy source, the timing is right to return to drill its flagship Davidson River project (the “Project”).

To advance the Project, the board of directors has resolved to proceed with a non-brokered private placement to raise gross proceeds of up to C$3,000,000 (the “Offering”), conditional upon the completion of the continuation of the Company into the Province of British Columbia (the “Continuation”) and a consolidation of the outstanding share capital of the Company on a one-for-five basis (the “Consolidation”).

The Offering will consist of any combination of units of the Company (each, a “Unit”) at a price of C$0.25 per Unit, and charity flow-through units of the Company (each, a “CFT Unit”, and collectively with the Units, the “Offered Securities”) at a price of C$0.38 per CFT Unit. Each Unit will consist of one post-Consolidation common share of the Company (each a “Unit Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each CFT Unit will consist of one post-Consolidation common share of the Company to be issued as a “charity flow-through share” within the meaning of the Income Tax Act (Canada) (each, a “CFT Share”) and one-half of one Warrant. Each whole Warrant shall entitle the holder to purchase one post-Consolidation common share of the Company (each, a “Warrant Share”) at a price of C$0.38 at any time on or before that date which is twenty-four months after the closing date of the Offering.

The net proceeds raised from the Offering will be used for the exploration of the Company's Davidson River Project and for working capital purposes. Proceeds from the sale of CFT Shares will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the purchasers of CFT Shares with an effective date not later than December 31, 2024, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of the CFT Shares.