Laramide Resources Closes $1.6 Million Private Placement
Dec 24, 2015
Listed (TSX:LAM; ASX:LAM)
TORONTO, Dec. 24, 2015 /CNW/ - Laramide Resources Ltd. ("Laramide" or the "Company") (TSX: LAM; ASX:LAM) is pleased to announce that it has closed a non-brokered private placement (the "Offering") of up to 6,420,000 units (the "Units") of the Company at a price of C$0.25 per Unit, for aggregate gross proceeds of up to C$1.605 million. Each Unit consists of one common share (a "Common Share") in the capital of the Company and one-half (1/2) of a share purchase warrant (each whole warrant, a "Warrant") of the Company exercisable for a period of 24 months from the closing of the Offering at an exercise price of $0.50 per Common Share.
The Company plans to use the proceeds of the Offering to advance its uranium projects in the United States and Australia and for general corporate purposes.
In accordance with closing the Extract Term Loan (previously announced on December 1, 2015), the Term Loan is scheduled to occur on or about December 31, 2015, and remains subject to the completion of definitive documents and receipt of regulatory approvals.
The Company paid an aggregate cash finder's fee of 6% to certain arm's length parties with respect to certain orders provided in connection with the Offering including to Dundee Capital Markets, Marquest Capital Markets and Secutor Capital Management Corp.
The common shares and Warrants will be subject to a four-month hold period under applicable securities laws in Canada.
Directors and officers of the Company (the "Purchasing Insiders") purchased an aggregate of 950,000 Units pursuant to the Offering. Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the purchase by the Purchasing Insiders was a "related party transaction". The Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Offering in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101, as neither the fair market value of the securities received by such parties nor the proceeds for such securities received by the Company exceeds 25% of the Company's market capitalization as calculated in accordance with MI 61-101. The material change report is being filed less than 21 days before the closing of the Offering as the Company requires the consideration it received in connection with the Offering immediately for working capital purposes.
In addition, to facilitate closing the Offering, a director of the Company participated in a "gypsy swap" transaction to a subscriber by selling 700,000 Common Shares at $0.25 per Common Share with those funds included in the Offering proceeds. Subsequently, the director's shares were replaced with new shares from the Offering.
To learn more about Laramide, please visit the Company's website at www.laramide.com.
About Laramide Resources:
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 are applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.
SOURCE Laramide Resources Ltd.
For further information: Marc Henderson, President and Chief Executive Officer, Toronto, Canada +1 (416) 599 7363; Bryn Jones, Chief Operating Officer, Brisbane, Australia, P: (07) 3831 3407; Greg Ferron, Vice-President, Corporate Development/Investor Relations, Toronto, Canada +1 (416) 599 7363