Madison Metals wants to raise up to N$48.3 million (C$3.5 million) through a private placement to start drilling activities at the Khan high-grade uranium discovery in Namibia.
The company also wants the money for acquisition costs and general working capital.
The Khan project comprises mining licence 86A and EPL 8905. It is southwest of the Rössing Uranium Mine. Historically, detailed exploration for uranium has never been conducted at ML86A due to copper mining activities within the licence.
Madison Metals acquired a 90% direct interest in the Khan project in November 2022.
Gene McBurney and Michael Wekerle of ECM Capital Advisors Inc., a Bahamian Corporation, are the strategic advisors for this transaction.
According to a statement Wednesday, Madison will sell up to 10 million units for C$0.35 per unit to raise a minimum of C$1 million and a maximum of C$3.5 million.
Each unit has one common share and a one-half common share purchase warrant.
Each full warrant, a valuable component of the units, entitles the holder to purchase one common share in the company’s capital for a price of CN$0.50 for eighteen months from the closing date, offering potential for future gains.
The units will be sold to purchasers resident in Canada (except Quebec) and other qualifying jurisdictions under the listed issuer financing exemption under Part 5A of National Instrument 45-106 Prospectus Exemptions.
According to applicable Canadian securities laws, the securities issued under the offering will not be subject to any statutory hold period.
