Listed (TSX:LAM; ASX:LAM)
TORONTO, Jan. 16, 2020 /CNW/ - Further to Laramide's press
release dated January 10, 2020,
Laramide Resources Ltd. ("Laramide" or the "Company")
is pleased to announce that the Company has closed its non-brokered
private placement (the "Offering"), issuing 22,500,000 units
(the "Units") at a price of C$0.20 per Unit, for aggregate gross proceeds of
C$4,500,000.
The Company plans to use the proceeds of the Offering to
complete the final milestone payment of the Churchrock acquisition
and for general working capital purposes.
Each Unit consists of one common share in the capital of the
Company and one share purchase warrant (a "Warrant"), with
each Warrant entitling the holder to purchase one additional common
share at a price of C$0.30 for a
period of 36 months from the date of closing of the Offering. In
the event that the common shares trade at a price of C$0.60 or greater for a period of 20 consecutive
trading days at any time following the date that shareholder
approval is obtained, the Company may accelerate the expiry date of
the Warrants by giving notice to the holders and, in such case, the
Warrants will expire on the 10th business day after the date on
which such notice is given by the Company.
The Common Shares and Warrants issued pursuant to the Offering
are subject to a statutory four-month hold period expiring on
May 17, 2020. The exercise of an
aggregate of 11,250,000 Warrants shall be subject to the approval
by shareholders of the Company by way of a simple majority of votes
cast in respect of such matter. The common shares issued in
connection with the Offering will be eligible to vote.
The Company paid a cash commission of 5% in finder's fees to
certain parties with respect to services provided in connection
with the Offering, and an additional 200,000 common shares were
issued to eligible finders in lieu of cash commission. PowerOne
Capital Markets Limited acted as a finder in connection with a
portion of the private placement.
Certain officers and directors of the Company (the "Related
Parties") participated in the Offering for a total of 1,775,000
Units, which participation constitutes a "related party
transaction" as defined under Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). Such related party
transaction is exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 as neither the fair
market value of securities being issued to the related parties nor
the consideration being paid by the related parties exceeded 25% of
the Company's market capitalization. The participants in the
Offering and the extent of such participation were not finalized
until shortly prior to the completion of the Offering. Accordingly,
it was not possible to publicly disclose details of the nature and
extent of related party participation in the Offering pursuant to a
material change report filed at least 21 days prior to the
completion of the Offering.
To learn more about Laramide, please visit the Company's website
at www.laramide.com.
About Laramide Resources:
Laramide is a Canadian-based company with diversified uranium
assets strategically positioned in the
United States and Australia
that have been chosen for their low-cost production potential.
Laramide's recently acquired Churchrock and Crownpoint properties form a leading In-Situ
Recovery (ISR) division that benefits from significant mineral
resources and near-term development potential. Additional U.S.
assets include La Jara Mesa in Grants,
New Mexico, and La Sal in
the Lisbon Valley district of Utah. The Company's Australian advanced stage
Westmoreland is one of the largest
uranium projects currently held by a junior mining company.
Laramide is listed on the TSX: LAM and ASX: LAM.
Forward-Looking Information
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address future
production, reserve potential, exploration drilling, exploitation
activities and events or developments that the Company expects are
forward-looking statements. Although the Company believes the
expectations expressed in such statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in the statements. There are certain factors
that could cause actual results to differ materially from those in
forward-looking statements. These include market prices,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or
developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
investors are encouraged to review the Company's public filings at
www.sedar.com. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, other than
as required by law.
SOURCE Laramide Resources Ltd.