Under the Placement, GoviEx has issued 16,228,177 units (each a "Unit") to Ivanhoe Industries at the price of C$0.1125 per Unit. Each Unit consists of one common share and one common share purchase warrant exercisable into a common share of GoviEx at a price of C$0.18 for a period of 24 months from the closing date.
As a result of the Placement, Ivanhoe Industries owns approximately 9.99% of GoviEx’s issued and outstanding shares.
Ivanhoe Industries is a U.S.-based, privately held company actively engaged in supporting technology, energy and natural resource companies worldwide.
Ivanhoe Industries is backed by several prominent entrepreneurs, including Robert Friedland, and the company has deep and extensive relationships with global financial institutions and corporate multinationals.
The inclusion of Ivanhoe Industries as a strategic investor in GoviEx, alongside leading nuclear industry partners Toshiba and Cameco, further expands GoviEx’s access to technical and financial expertise required for the development of its Madaouela Project in Niger.
GoviEx CEO Daniel Major said: "The Ivanhoe name is synonymous with discovery and innovation, and members of Ivanhoe Industries have been part of the development of several leading resource, energy and technology companies worldwide. We are delighted to have Ivanhoe Industries join us as a strategic partner."
All warrants issued under the Placement will be subject to an acceleration clause under which GoviEx may accelerate the expiry date of the warrants if the closing price of its shares on the Canadian Securities Exchange is equal to or greater than C$0.216 for a period of 15 consecutive trading days. If it chooses to exercise the acceleration clause, GoviEx will give written notice to the holders of the warrants that the warrants will expire within 60 days of the date of the notice.
GoviEx will use the net proceeds from this Placement for general corporate purposes, as well as to fund the continued project optimization of the Madaouela Project.
Under an Investment Agreement between GoviEx and Ivanhoe Industries entered into in connection with the Placement, for so long as Ivanhoe Industries owns more than 5% of GoviEx’s common shares it will be entitled to appoint one director to GoviEx’s board and will also have the right (but not the obligation) to retain its pro rata shareholding percentage in the common shares by participating in any future equity financing conducted by GoviEx.
