VANCOUVER, Aug. 2, 2016 /CNW/ - Uracan Resources Ltd. (TSX.V:URC) ("Uracan" or the "Company") announces that it has closed the second tranche of its non-brokered private placement. The second tranche consists of 3,600,000 flow through ("FT") shares at a price of $0.05 per share for gross proceeds of $180,000, and 704,000 non flow though ("NFT") units at a price of $0.05 per share for gross proceeds of $35,200 for a combined total gross proceeds of $215,200.
In total, 19,600,000 flow through ("FT") shares at a price of $0.05 per share for gross proceeds of $980,000, and 12,831,500 non flow though ("NFT") units at a price of $0.05 per share for gross proceeds of $641,575 were issued in the two tranches. The total gross proceeds of the financing is $1,621,575. Each non-flow through unit consists of one half of a common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at an exercise price of $0.10 per common share until June 30, 2017 in the first tranche and until August 2, 2017 in the second tranche. Finder's fees of 6% of the gross proceeds of the offering were paid on a portion of the offering.
The securities issued in connection with these financings are subject to a statutory hold period of four months and one day which will expire on December 3, 2016. Finder's fees associated with the second tranche closing were paid in cash to third parties, in aggregate of $12,412.
Proceeds will be used to continue exploration and development of the Company's Clearwater Property located in the Southwest Athabasca basin region of Saskatchewan along the southwest extension of the Patterson Lake Trend, as well as for general corporate purposes. The Patterson Lake Trend hosts Fission Uranium Corporation's Triple R deposit (Indicated resource: 2.0Mt @ 1.83% U3O8 containing 81.1M lbs U3O8, Inferred resource: 0.785Mt @ 1.57% U3O8 containing 27.15M lbs U3O8) and the Nexgen Energy Ltd. Arrow deposit (Inferred resource: 3.48Mt @ 2.63% U3O8 containing 201.9M lbs U3O8).
ABOUT URACAN RESOURCES LTD.
Uracan Resources Ltd. (TSX.V:URC) is a Canadian-based exploration company focused on exploring for uranium deposits in Saskatchewan and Quebec, Canada.
In July 2014 Uracan signed an agreement with Forum Uranium whereby Uracan can acquire up to a 70% interest in the Clearwater Property near the southwestern margin of the Athabasca Basin, immediately adjacent to Fission Uranium's Patterson Lake South discovery. Forum is the 100% owner of the Clearwater Property.
In early 2013, Uracan signed an agreement with UEX Corporation, whereby Uracan acquired the option to earn from UEX a 60% participating interest in the Black Lake Property along the northern margin of the Athabasca Basin. UEX currently holds an 90.69% interest in the Black Lake Project with AREVA Resources Canada Inc. ("AREVA") holding the remaining 9.31% interest.
Uracan continues to review additional opportunities worldwide to capitalize on management's exploration and financing capabilities.
Technical information in this news release has been reviewed and approved by Marc Simpson, P. Geo, a Qualified Person as defined by National Instrument 43-101 ("N.I. 43-101") standards.
ON BEHALF OF URACAN RESOURCES LTD.
"Clive Johnson" "Marc Simpson"
Clive Johnson Marc Simpson
Chairman President and CEO
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking information relating to the future performance of the Company. Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Such risks and other factors include, among others, the actual results of exploration activities, changes in world commodity markets or equity markets, the risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the mining industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com ). Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein. The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
SOURCE Uracan Resources Ltd.
For further information: Marc Simpson, President and CEO, Uracan Resources Ltd., 604-506-6996, www.uracan.ca