Listed on TSX (Symbol: LAM)
TORONTO, Dec. 24, 2013 /CNW/ - Laramide Resources Ltd. ("Laramide" or
the "Company") is pleased to announce that it has closed its previously
announced non-brokered private placement (the "Offering"). The
placement consisted of 5,000,000 units (the "Units") of the Company at
a price of $0.40 per Unit, for aggregate gross proceeds of $2.0
Each Unit consists of one common share in the capital of the Company,
one-half (1/2) of one non-transferable share purchase warrant (each
whole warrant a "Series A Warrant") and one-half (1/2) of one non-
transferable share purchase warrant (each whole warrant a "Series B
Warrant"). Each Series A Warrant entitles the holder to purchase one
additional common share at a price of $0.60 for a period of 18 months
from the date of closing of the Offering, provided that, in the event
the closing price of the Company's shares as traded on the Toronto
Stock Exchange is $0.80 or greater for a period of 20 consecutive
trading days, the Company may give notice of an earlier expiry of the
Series A Warrants, in which case they would expire 30 calendar days
from the giving of such notice; provided further that, in the event a
subscriber exercises any Series A Warrants during the term thereof, the
subscriber is entitled to that number of Series B Warrants equal to the
number of Series A Warrants exercised, with each Series B Warrant to
entitle the holder to purchase one additional common share at a price
of $0.80 for a period of 3 years from the date of closing of the
The Units were offered on a private placement basis and subject to a
four-month hold period.
The Company plans to use the proceeds of the Offering to advance its
Westmoreland project in Australia, and for general corporate purposes.
"2013 has been another challenging year for uranium producers and
developers as utility concerns over Japanese inventory overhang have
yet to be definitively resolved", stated Marc Henderson, President and
Chief Executive Officer. "Recent spot market developments, however, are
somewhat more encouraging and with the consensus industry view that a
uranium production deficit is now likely in the medium to longer term,
2014 should see improvement in prices and sentiment. Notwithstanding
the difficult market environment, the political and permitting
landscape for Laramide's Westmoreland Project improved materially in
2013 and this equity financing positions the Company to move rapidly to
secure its place in the development pipeline once market conditions
improve as expected."
The Company paid a finder's fee of 6% cash commission to certain parties
with respect to services provided in connection with the Offering.
To learn more about Laramide, please visit the Company's website at www.laramide.com.
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 ere 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 CEO
Toronto, Canada +1 (416) 599 7363
Greg Ferron, Vice-President, Investor Relations
Toronto, Canada +1 (416) 599 7363