Foremost Clean Energy Ltd. Announces Private Placement Agreement with Canaccord Genuity Corp. for Flow-Through Shares Offering

Foremost Clean Energy Ltd. Announces Private Placement Agreement with Canaccord Genuity Corp. for Flow-Through Shares Offering

Foremost Clean Energy Ltd. has recently announced a private placement agreement with Canaccord Genuity Corp. for the sale of 1,618,000 units at a price of C$3.40 per unit, resulting in gross proceeds of $5.5 million. Each unit includes one common share and one half of a common share purchase warrant, qualifying as a "flow-through share" under the Income Tax Act.

Denison Mines Corp., Foremost's largest shareholder, has the option to participate in the offering, potentially increasing its ownership to around 19.95% post-closing. The underwriter also has the option to purchase an additional 242,700 units, which could generate extra gross proceeds of $825,180 if fully exercised.

The proceeds from the offering will be used to incur Canadian exploration expenses that qualify as "flow-through critical mineral mining expenditures" on the company's mineral projects in Canada by December 31, 2027. The company will renounce these expenditures in favor of the unit purchasers by December 31, 2026, to ensure tax benefits. In case of any issues with renouncing the expenditures, the company will indemnify affected purchasers for any additional Canadian income taxes incurred.