Premier American Uranium Inc. announced that it has entered into an agreement for a private placement on bought deal to issue of a minimum of 5,750,000 subscription receipts of at an issue price of CAD 1.8 per subscription receipt for minimum gross proceeds of CAD 10,350,000 on July 5, 2023. The agents will have an option, exercisable in full or in part up to 48 hours prior to the closing of the offering, to sell up to an additional 833,334 subscription receipts at the offering price for additional gross proceeds of up to CAD 1,500,001. The offering is expected to include lead orders of at least CAD 2,000,000 from each of new investors, Mega Uranium Ltd. and a funds managed Sachem Cove Partners is the general partner.

Each subscription receipt will entitle the holder thereof to automatically receive, upon satisfaction or waiver, as applicable, of certain escrow release conditions, one unit of company. Each unit shall be comprised of one common share of company and one-half of one common share purchase warrant of company. Each whole warrant will entitle the holder to purchase one common share of company at an issue price of CAD 2.5 for a period of 36 months following the date of issuance of the Warrants.

The escrow release conditions includes the satisfaction of all condition’s precedent to the completion of the spin-out as well as receipt of conditional approval for the listing of company’s common shares on the TSX Venture Exchange.