Terra Clean Energy (CSE:TCEC) has increased its proposed brokered private placement to C$2.5 million ($2.52 million), citing investor demand.
The revised offering is 25% larger than the C$2 million financing announced on 8 September. Centurion One Capital remains lead agent and sole bookrunner.
Terra plans to issue up to 17,857,142 units at C$0.14 each. Every unit comprises one common share and one warrant, exercisable at C$0.22 for three years after closing.
The lead agent can place another 2,678,571 units for up to C$375,000, potentially taking total proceeds to approximately C$2.88 million.
Terra intends to use the proceeds of the placement for capital expenditure and general working capital.
The company can accelerate warrant expiry if its daily volume-weighted average share price exceeds C$0.44 for 15 consecutive trading days after closing. If Terra exercises that right, holders would have 30 days from notification to exercise their warrants.
Closing is expected around 1 October, subject to approvals, including from the Canadian Securities Exchange. Securities will carry a four-month-and-one-day statutory hold period.
The financing comes as Terra prepares its Marysvale Uranium Mines Project in Utah, US, for drilling.
As previously reported, the company engaged a contractor to construct five drill pads and excavate seven trenches, with mobilisation scheduled for 21 September.
Terra says company insiders and the lead agent may subscribe for up to approximately 100% of the offering. It expects any insider participation to qualify for exemptions from formal valuation and minority shareholder approval requirements.
Terra Clean Energy is a Canadian uranium explorer and developer advancing South Falcon East in Saskatchewan, Canada, alongside projects in Utah and Wyoming, US.
Write to France Pinzon at Mining.com.au
Main image: Terra Clean Energy
