First Uranium Corp will sell C$106.8 million ($92 million) in stock by way of a bought deal financing, and use the proceeds for possible acquisitions and to speed up development of its mine waste processing plant, the company said on Monday.
The Toronto-based company plans to sell 15.3 million shares at C$7 each through a syndicate of underwriters led by Scotia Capital.
If an overallotment is exercised, the company could sell an additional 2.3 million shares, worth about C$16 million.
First Uranium said it will use the funds to speed up construction of the pressure leach portion of the uranium processing circuit at its tailings recovery operation in South Africa.
It will also use the funds for potential consolidation opportunities, it said.
The offering is expected to close on or about June 1.
The company's shares fell 2.7 percent to C$7.54 on the Toronto Stock Exchange. The deal was announced after markets closed.
($1=$1.17 Canadian) (Reporting by Cameron French; editing by Rob Wilson)
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