Laramide Resources Ltd. (the "Company") (TSX:LAM) announces that it has entered into an agreement with a syndicate of underwriters, co-led by GMP Securities L.P. and Dundee Securities Corporation and including Cormark Securities Inc. and Haywood Securities Inc. (collectively, the "Underwriters"), which have agreed to purchase, on a bought deal basis, 5,000,000 units (the "Units") of the Company at a price of $1.75 per Unit, for aggregate gross proceeds of approximately $8.75 million (the "Offering"). Each Unit will consist of one common share (a "Common Share") of the Company and one half of a common share purchase warrant (each full warrant a "Warrant") with each Warrant entitling the holder thereof to purchase an additional Common Share of the Company at the exercise price of $2.50 per Common Share for a period of 3 years following the closing of the Offering. In addition, the Company has granted the Underwriters an over-allotment option to purchase up to that number of additional Common Shares and half-Warrants equal to 15% of the Units sold pursuant to the Offering, exercisable at any time up to 30 days from the closing of the Offering.
The Company plans to use the net proceeds from the offering to fund its Westmoreland project in Australia and for general corporate purposes.
The Units will be offered by way of a short form prospectus to be filed in all of the provinces of Canada except Quebec pursuant to National Instrument 44-101 Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
The offering is scheduled to close on or about March 5, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Laramide 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, Westmoreland, in Queensland, Australia, is 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.
This press release contains forward-looking statements. The 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.
For more information, please contact
Laramide Resources Ltd.
Laramide Resources Ltd.
+61 (7) 3831 3407