Aero Energy Limited, trading under the ticker symbols TSXV: AERO and OTC Pink: AAUGF, is excited to announce the closure of the final tranche of its non-brokered private placement. This announcement follows previous communications in dicembre. The recent financing effort has resulted in the issuance of a total of 5,367,173 common shares at a price of $0.23 each, generating gross proceeds of $1,234,450. Additionally, the company has issued 7,142,857 charity flow-through shares priced at $0.35 each, bringing in another $2,500,000.
These flow-through shares are designed to qualify as flow-through shares as per the Income Tax Act (Canada), and they also meet the criteria for the Mineral Exploration Tax Credit Regulations of Saskatchewan. In total, Aero Energy has successfully raised a remarkable $5,000,000 through this offering, combining both tranches, which included a mix of 10,869,565 NFT Shares and the aforementioned charity shares.
Use of Proceeds
The funds acquired from this private placement will be utilized strategically. The net proceeds from the sale of the NFT shares will primarily support the exploration endeavors and development of Aero’s uranium assets located in Saskatchewan and Nevada. Furthermore, these funds will also serve general working capital requirements.
Flow-through Share Investments
Conversely, the gross proceeds from the charity flow-through shares will be directed towards eligible Canadian exploration expenses. These expenditures are defined as flow-through critical mineral mining expenditures under the Income Tax Act (Canada) and must be incurred by the end of the year. Importantly, these expenditures will be renounced in favor of the CFT share subscribers by the effective date of the end of the year.
Final Tranche Details
As part of the final tranche, Aero Energy has compensated finders with a cash fee totaling $60,436 along with issuing 262,765 finder’s warrants to Eventus Capital Corp., a recognized arm’s length finder. Each of these warrants allows the holder to acquire one common share at a price of $0.23, valid until the end of the month.
The NFT shares issued in the final tranche comply with Part 5A.2 of National Instrument 45-106, amended by the Coordinated Blanket Order 45-935, which provides certain exemptions. It is important to note that these shares are not subject to a hold period under applicable Canadian securities laws. However, the finder’s warrants and any shares obtained through their exercise will be under a hold period expiring on a date in the future.
Company Background
Aero Energy Limited has solidified its position in the uranium sector following a successful merger with Kraken Energy Corp. This merger has equipped the company with a diversified portfolio of uranium assets across North America. Among the noteworthy assets is a significant land package in the Athabasca Basin of Saskatchewan, which includes the Strike and Murmac projects, both of which are rich in drill-ready targets.
Aero’s projects benefit from the expertise of a highly skilled technical team known for significant discoveries in the industry. The merger has also granted Aero control over Kraken’s Apex Uranium Property, recognized as the largest past-producing uranium mine in Nevada, alongside the Huber Hills Property, which spans 1,044 hectares and includes the historic Race Track open pit mine. This strategic combination positions Aero Energy to leverage the increasing global demand for uranium while unlocking high-grade mineralization potential.
For more detailed information about Aero Energy Limited, interested parties are encouraged to visit aeroenergy.ca.