UEX announces $2.0M FT private placement

UEX Corporation


November 27, 2017 Trading Symbol: UEX-TSX

UEX Announces $2.0 Million Flow-Through Private Placement


UEX Corporation (TSX: UEX) (“UEX” or the “Company”) is pleased to announce that it has entered into an agreement with Sprott Capital Partners (the “Agent”), a division of Sprott Private Wealth LP, under which the Agent has agreed to act on behalf of the Company for a private placement of 5,560,000 common shares of the Company which will qualify as “flow-through” shares pursuant to the Income Tax Act (Canada) (the “FT Shares”) at a price of C$0.36 per FT Share ($2,001,600)(the “Offering”).

The Agent will receive a commission equal to 7% of the aggregate gross proceeds raised in the Offering which will be paid in common shares of the Company at a price of $0.36 per common share. The Agent will also receive the number of broker warrants which equals to 4% of the number of FT Shares placed by the Agent. Each broker warrant will be exercisable for one common share of the Company for a period of two years at a price of C$0.42 per common share.

The gross proceeds of the FT Share offering will be used to fund exploration of the Company’s properties as qualifying Canadian Exploration Expenses as defined in subsection 127(9) of the Income Tax Act (Canada) which will be renounced to the subscribers with an effective date of December 31, 2017.

In particular, UEX will use the proceeds to fund its upcoming winter exploration program at the West Bear Cobalt Prospect where the Company is currently planning a 35-hole – 3,500 m drill program with the objective of completing a maiden NI 43-101-compliant resource. The balance of the proceeds will ensure that UEX has the necessary funds to meet the 2018 exploration work commitments under the Christie Lake Option Agreement that will, together with payment of $1M at each of the 2017 and 2018 calendar year ends, enable the Company to vest a 60% interest in the Christie Lake Project by the end of 2018.

Closing of the Offering is anticipated to occur during or before the week of December 18, 2017 and is subject to receipt of applicable regulatory approvals. The securities issued by UEX in connection with the Offering are subject to a hold period of four months plus one day as prescribed by applicable securities laws.

The Offering is being made in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Newfoundland and Ontario, and other jurisdictions as may be determined between the Company and the Agent, and is subject to the approval of applicable regulatory authorities.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.

On behalf of the Board of Directors of UEX
“Roger Lemaitre”

Roger Lemaitre
President & CEO
(306) 713-1401