/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES/
US Symbol: ATURF
VANCOUVER, Dec. 23 /CNW/ - Athabasca Uranium Inc. ("Athabasca" or the "Company") is pleased to announce that it has now completed it's previously announced private placement (see news releases dated November 25, 2010 and December 7, 2010) of up to 7,826,087 flow through units (the "FT Units") at a price of $0.23 per FT Unit and up to 6,500,000 units (the "NFT Units") at a price of $0.20 per NFT Unit for aggregate gross proceeds of up to $3,100,000 (the "Offering"). Each FT Unit consists of one common share in the capital of the Company which will be designated as a flow-through share pursuant to the Income Tax Act (Canada) and one share purchase warrant (a "FT Warrant"). Each FT Warrant entitles the holder to purchase one common share in the capital of the Company (a "Share") at a price of $0.35 per Share for a period of one year from the closing of the Offering. Each NFT Unit consists of one Share and one share purchase warrant (a "NFT Warrant"). Each NFT Warrant entitles the holder to purchase one Share at a price of $0.30 per Share for a period of one year from the closing of the Offering.
The Company has now closed the second tranche of the Offering consisting of 1,348,695 FT Units and 6,500,000 NFT Units for aggregate gross proceeds of $1,610,199.86. Each FT Warrant issued entitles the holder to purchase one Share at a price of $0.35 per Share until December 22, 2011 and each NFT Warrant entitles the holder to purchase one Share at a price of $0.30 per Share until December 22, 2011. The Company will renounce an amount equal to the gross proceeds derived from the sale of the FT Units to the purchasers thereof in accordance with the provisions of the Income Tax Act (Canada).
In connection with the closing, the Company paid certain finders (each a "Finder") a cash commission equal to 7% of the proceeds of the sale of FT Units and NFT Units by such Finder (being $89,954.09 in total) and issued finder's compensation warrants (the "Finder's Warrants") equal to 10% of the number of FT Units and NFT Units sold by such Finder (being 550,869 Finder's Warrants in total). Each Finder's Warrant entitles such Finder to purchase a Share (a "Finder's Warrant Share") at an exercise price of $0.30 per Finder's Warrant Share until December 22, 2011.
All securities issued in the closing of the second tranche will be subject to a hold period which expires April 23, 2011. The proceeds of the Offering will be used for exploration on the Company's properties in the Athabasca Basin region of Saskatchewan, for property acquisition and for general working capital and corporate purposes.
About Athabasca Uranium
Athabasca Uranium Inc. is a uranium exploration and development company acquiring and exploring properties located in the uranium-rich Athabasca Basin in northeast Saskatchewan. The Company's stated vision is to explore the region using leading-edge technology to become a world-class uranium mining company. Additional information on Athabasca Uranium and its vision is available on the Company's website at www.athabascauranium.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Gil Schneider, President & CEO
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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