GoviEx Uranium (GXU) - Why Raise Money in this Market?

Interview with Dan Major, CEO of GoviEx Uranium (TSX-V: GXU)

Our previous interview: https://youtu.be/yBPvXgNL9gQ

Recording date: 28th October 2022

Contrarian investment is the term used to refer to an investment strategy in which an investor purposefully goes against the grain. A contrarian investor buys when most of the market is selling and sells when most of the market is buying.

GoviEx Uranium Inc. is a Canadian-based uranium development company focused on its projects located in Africa. The company boasts a resource inventory of over 220 million pounds (lbs) of U3O8 in measured, indicated and inferred resources. The company’s asset portfolio consists of the Madaouela project, located in Niger, the Mutanga project, located in Zambia and the Falea project, located in Mali.

The company on the 25th of September 2022, announced that it had concluded with the first tranche of a bought deal private placement financing, which was underwritten by Sprott Capital Partners. The first tranche of the placement consisted of the issuing of 46,213,000 units at CAD$ 0.22 per unit, for an approximate total of CAD$ 1.17 million. The second tranche of the bought deal private placement was announced to have closed on the 27th of October 2022. The second tranche consisted of the issuing 1,545,000 units of the company at CAD$ 0.22 providing additional proceeds of approximately CAD$ 0.34 million and bringing the total funds raised to approximately CAD$ 10.5 million.

The raised funds will be implemented by the company to advance its uranium projects, enabling the company’s goal of production by 2025. GoviEx Uranium Inc. aims to advance offtake and debt financing options for the Madaouela project, developing the Mutanga project to a feasibility study by the end of 2023 and the continued exploration of its Falea project.

0:00 - Company Overview
0:30 - Reason for Raising Relatively Large Capital despite the Current Market Condition
1:48 - Overview of the Company’s Backup Plan
3:23 - Perspective towards Optionality in M&A
5:16 - Budget Allocation of the Recently Raised Capital and Plans for the Next 12 Months
9:29 | 15:56 | 18:00 - Getting the Approval and Confidence of the Financial Institutions
13:40 - Providing Due Diligence in Uranium Mines
21:54 - Strategy towards Playing the Company Portfolio
23:47 - Strategy in Advancing the Company in terms of Focus
24:33 - Overview of Conversations in the Uranium Sector
26:54 - Confidence towards GoviEx Uranium
28:38 - Outro

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