CanAlaska rides uranium wave, ups financing to $12M

In another sign of the uranium revival, junior explorer CanAlaska Uranium (TSXV: CVV; US-OTC: CVVUF) has increased its fundraising plans to $12 million, up from the $7.5 million announced only yesterday. 

CanAlaska holds interests in 3,500 sq. km in the eastern Athabasca Basin of Saskatchewan. Its core projects include the wholly-owned Cree East and Waterbury South; West McArthur, jointly owned with Cameco (TSX: CCO; NYSE: CCJ), and Moon Lake South, jointly owned with Denison Mines (TSX: DML; NYSE: DNN). It also has an option to earn up to 100% interest in Key Extension, which is owned by Durama Enterprises.

The private placement offering consists of flow-through units priced at 42¢ per unit, charity flow-through units at 56¢ per unit, and non-flow-through units priced at 36¢ per unit.

In October, CanAlaska spun out its five nickel properties in Manitoba into a new wholly owned subsidiary known as Core Nickel. 

CanAlaska’s fundraising news comes as analysts forecast the price of uranium will reach triple-digits for the first time since 2007 as countries use up uranium supplies in a shift away from fossil fuels. 

Each unit in the financing will consist of one common share and one share purchase warrant in the cases of the charity flow-through and non-flow-through units.

The flow-through units will include one share plus one-half a share purchase warrant. Each warrant will entitle the holder to purchase a share at 56¢ each in the next 24 months.

CanAlaska shares traded at 38¢ apiece on Tuesday afternoon in Toronto, valuing the company at $48.1 million. Its shares have traded in a 52-week window of 29¢ and 65¢.