01:05 PM EST, 03/06/2024 (MT Newswires) -- Aero Energy Ltd. ( AAUGF ) on Wednesday surged 16.7% on last look after reporting that it has upsized its private placement of units to $5.9 million from $5 million.

The company closed the first tranche of the offering for gross proceeds of about $4.5 million on March 5.

In connection with the completion of the first tranche, the company issued about 12.4 million non-flow-through units at $0.15 per NFT unit; about 8.4 million flow-through units at $0.175 per FT unit; and roughly 5.3 million flow-through charity units at $0.2275 for gross proceeds of about $4.5 million.

Each NFT unit consists of one non-flow-through common share and one-half of one share purchase warrant. Each FT unit and charity unit consists of one share and one-half of one warrant. Each warrant entitles the holder to buy one additional common share at $0.25 per warrant share until March 5, 2026. The warrant shares will be issued on a non-flow-through basis.

The company plans to use the gross proceeds from the sale of the FT units and the Charity FT units for eligible "Canadian exploration expenses" that qualify as "flow-through critical mineral mining expenditures" related to the company's uranium projects in the Athabasca Basin, Saskatchewan, by Dec. 31, 2025.

The net proceeds from the sale of the NFT units will be used for general working capital purposes. The offering is expected to close by March 8.

Price: 0.25, Change: +0.04, Percent Change: +16.67