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VANCOUVER, British Columbia, Oct. 05, 2022 (GLOBE NEWSWIRE) — Traction Uranium Corp. (the “company” or “traction“) TRAC TRCTF (FRA: Z1K) is pleased to announce that it has entered into an agreement with Red Cloud Securities Inc. (the “agent“) to act as sole agent and bookrunner in connection with a best-effort private placement (the “offer“) for gross proceeds of up to $3,000,000 from the sale of any combination of the Company’s flow-through units (each a “FT unit“) at a price of C$0.40 per FT Unit and FT Units to be sold to charitable buyers (each a “Charity FT Unit” and together with the FT units the “Securities Offered“) at a cost of C$0.51 per Charity FT Unit.
Each FT Unit and Charity FT Unit consists of one common share of the Company issued as a “flow-through share” for the purposes of the Income Tax Act (Canada) (each a “FT share“) and one-half common share purchase warrant (each whole warrant being a “warranty“). Each Warrant will entitle the holder to purchase one common share of the Company (each a “option stock“) at a price of $0.50 CAD any time on or before such date which is 24 months after the Offer Closing Date.
The Agent has an option, which may be exercised up to 48 hours prior to the closing of the Offering, in whole or in part, to sell up to an additional $500,000 in any combination of the Offered Securities at the Offered Prices.
Proceeds from the sale of FT shares will be used to incur “Canadian Exploration Expenditure” as defined in Section 66.1(6) of the Income Taxes Act and “Flow-Through Mining Expenditure” as defined in Section 127(9) of the Income Taxes Act. Such proceeds will be assigned to subscribers with effect from 31 December 2022 at the latest in an aggregate amount not less than the aggregate gross proceeds from the issue of FT Shares.
The company intends to…
