Cosa Closes $4.2m Private Placement for Uranium Projects in Athabasca Basin

Wedoany.com Report-Feb 28, Canadian uranium exploration company Cosa Resources has closed a previously announced brokered private placement, including full exercising of the over-allotment option, for aggregate gross proceeds of approximately C$6m.

Denison, a major operator in the Athabasca Basin, is focused on the Wheeler River project and has a market capitalisation of around C$2bn ($1.4bn).

This strategic financial move is expected to bolster the company’s uranium projects in the Athabasca Basin in Saskatchewan.

Denison Mines, Cosa’s largest shareholder, participated in the offering under its pre-emptive and top-up rights.

A key player in the Athabasca Basin, Denison’s current focus is on the development-stage Wheeler River project.

Cosa issued 8.8 million units at C$0.25 per unit and 8.94 million charity flow-through units at C$0.425 per unit.

The gross proceeds from the charity units will be used to incur qualifying expenditures related to the company’s uranium projects, with all expenditures to be renounced in favour of the subscribers, effective 31 December 2025.

The net proceeds from the units’ sale will fund exploration and provide additional working capital.

Certain company insiders including directors and officers from Cosa and Denison participated in the offering, which is considered a related-party transaction exempt from certain formal valuation and minority approval requirements.

Denison held a 19.95% ownership stake in Cosa on a partially diluted basis before the offering.

Following the offering, Denison will file an early warning report regarding its acquisition of additional units.

Denison’s ownership has adjusted to 18.81% of Cosa’s issued and outstanding shares and 14.25% of the warrants.

The company’s future investment decisions will be influenced by ongoing reviews and may lead to further acquisitions or disposals of Cosa securities.

The placement was led by Haywood Securities and included Red Cloud Securities as part of the syndicate of agents.

In November 2024, Denison Mines and Cosa Resources agreed to form three uranium exploration joint ventures in the eastern part of the Athabasca Basin in northern Saskatchewan.