Ivanhoe Industries, LLC

Ivanhoe Industries, LLC

June 13, 2016 14:52 ET

Ivanhoe Industries, LLC: Early Warning Report Filed Pursuant to Canada's National Instrument 62-103

NEW YORK, NEW YORK--(Marketwired - June 13, 2016) - This news release is issued by Ivanhoe Industries, LLC ("Ivanhoe Industries"), pursuant to the early warning requirements of Canada's National Instrument 62-103 with respect to common shares and warrants to purchase common shares of GoviEx Uranium Inc. ("GoviEx").

On June 10, 2016, GoviEx completed a private placement (the "Private Placement") and asset purchase (together with the Private Placement, the "Transactions") resulting in the issuance of 96,619,321 common shares of GoviEx to qualified investors, including Ivanhoe Industries. Details of the Transactions can be found in GoviEx's news release dated June 13, 2016.

Ivanhoe Industries subscribed for 1,836,142 units (the "Units") of GoviEx in the Private Placement, with each Unit consisting of one common share and one common share purchase warrant that entitles the holder to purchase one common share for a period of 36 months from the closing of the Private Placement, subject to applicable adjustments and acceleration provisions described later in this news release. The common share portion of the Units, plus GoviEx common shares held by Ivanhoe Industries prior to the closing of the Transactions, represent in aggregate 18,064,319 common shares, or approximately 6.82% of GoviEx's now issued and outstanding common shares. The aggregate purchase price for the Units was C$128,530, representing a price of C$0.07 per Unit.

Each warrant entitles the holder to purchase one common share of GoviEx at the June 10, 2016 US dollar equivalent price of C$0.15 for the first 24 months from the date of issue and thereafter at the June 10, 2016 US dollar equivalent price of C$0.18 until the warrants expire. Should the closing price of GoviEx's shares on the Canadian Securities Exchange exceed C$0.18 per share for each of 15 consecutive trading days (the "Accelerated Exercise"), then the expiry time of the warrant may be accelerated by GoviEx to the day that is 60 days following notice by GoviEx of the Accelerated Exercise.

Following the Transactions, Ivanhoe Industries is deemed to beneficially own 36,128,638 common shares (including 18,064,319 unissued common shares issuable upon the exercise of an aggregate of 18,064,319 common share purchase warrants), representing 12.77% of GoviEx's then issued and outstanding common shares on a partially diluted basis. All of these securities are beneficially owned and controlled by Ivanhoe Industries.

Ivanhoe Industries acquired the Units for investment purposes. Depending on economic or market conditions or matters relating to GoviEx, Ivanhoe Industries may choose to either acquire additional common shares or dispose of common shares of GoviEx.

For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the transactions hereunder please go to the GoviEx Uranium Inc. profile on SEDAR website at www.sedar.com, or contact Penny Schattenkirk at (604) 689-8765.

Contact Information

  • Penny Schattenkirk
    (604) 689-8765