Laramide Resources Ltd. (TSX: LAM) (“Laramide” or the “Company”) is pleased to announce the closing of a strategic purchase of 5,600,000 shares of Khan Resources Inc. (TSX: KRI) (“Khan”). Added to Laramide’s existing position, Laramide now owns 6,500,000 shares or 12.0% of Khan’s issued and outstanding shares. Laramide also owns 200,000 warrants exercisable at a price of CDN$1.90 until August 2008. The purchase consideration was comprised of US$4.5 million in cash and 1.35 million Laramide shares plus 1.35 million Laramide warrants, which shall be exercisable at a price of CDN$9.50 with an expiry date of September 10, 2009.
The shares were acquired from Wallace Mays and family members. Prior to this transaction, the Mays family had been Khan’s largest shareholder according to SEDI filings. Laramide has been an investor in Khan since the initial public offering of Khan shares on the Toronto Stock Exchange in August 2006. As a condition of the transaction, Wallace Mays has filed or will file an amended statement of claim in his ongoing litigation against Khan.
Khan owns 58% of the main properties comprising the pre-feasibility stage Dornod project in Mongolia, which was the site of an open pit mine producing uranium from 1988-1995 under Russian ownership and which now has an indicated resource estimate (NI 43-101 compliant, August 2007, Aker Kvaerner E&C, and Scott Wilson Roscoe Postle Associates Inc.) of 64.3 million pounds U3O8, of which 49.1 million pounds are classified as probable reserves. The Mongolian government owns 21% of the Dornod project, and the remaining 21% is owned by the prior owner.
Marc Henderson, Laramide’s President and CEO commented, “As shareholders of Khan, we’ve had for some time an interest in the Dornod deposit, which we believe represents one of the better undeveloped uranium deposits in the world. The recent market perceptions of Mongolian uncertainty over licensing created an attractive buying opportunity, whereby Dornod’s resources were valued at less than $4 per pound. We support the management team at Khan, and may accumulate a larger position if prices remain around these levels.”
Laramide also confirms that effective September 17, 2007; the Company was added to both the TSX/ S&P Global Mining Index as well as the TSX/ S&P Small Cap Index.
Laramide Resources is engaged in the exploration and development of high quality uranium assets. Its wholly owned uranium assets are in Australia and the United States. Laramide’s portfolio of advanced uranium projects have been chosen for their production potential. Its flagship project is Westmoreland, in Queensland, Australia, one of the largest projects currently held by a junior mining company. Its U.S. assets include La Jara Mesa in Grants, New Mexico and La Sal in the Lisbon Valley district of Utah. Its portfolio also includes joint venture, strategic equity positions and royalty participation in uranium development and exploration companies that provide additional geographic diversification and uranium exposure for shareholders.
For further information contact:
Marc C. Henderson, President
Toronto, Canada +1 (416) 599 7363
Flora Wood, Investor Relations
Toronto, Canada +1 (416) 599 7363
Or visit our web site at www.Laramide.com
This press release contains forward-looking statements. Actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.