Listed (TSX:LAM; ASX:LAM)
TORONTO, Jan. 10, 2020 /CNW/ - Laramide Resources Ltd. ("Laramide" or the "Company") announces that it has increased its private placement (the "Offering") as announced on January 3, 2020. The Offering has been increased from 15,000,000 units (the "Units") at a price of $0.20 per Unit to 22,500,000 Units, for total gross proceeds of $4,500,000. Each Unit will consist of one common share in the capital of the Company (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant").
Each Warrant will entitle the holder to purchase one additional Common Share at a price of $0.30 per Common Share for a period of 36 months from the date of closing of the Offering, subject to the Shareholder Approval (as defined below) requirement. If at any time after the Shareholder Approval is obtained, the Common Shares trade on the Toronto Stock Exchange at a volume weighted average trading price of $0.60 or greater per Common Share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof, and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
The number of securities issuable pursuant to the Offering including both the Common Shares and the Warrants is higher than 25% of the number of the Company's issued and outstanding common shares (on a non-diluted basis). Therefore, pursuant to the requirements of the Toronto Stock Exchange, half of number of Warrants to be issued pursuant to the Offering shall not be exercisable unless and until such time as the shareholders of the Company approve such exercise by way of a simple majority of votes cast in respect of such matter (the "Shareholder Approval"). The Company intends to hold a meeting of shareholders to vote on such matter and obtain the Shareholder Approval by June 30, 2020.
The closing of the Offering is expected to occur on or about January 15, 2020, earlier than previously announced in the press release dated January 3, 2020, subject to the completion of formal documentation and receipt of regulatory approval, including the approval of the Toronto Stock Exchange.
The Company may pay finders fees of up to 5% of gross proceeds raised, payable in cash or Common Shares.
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 Church Rock 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 theTSX: LAM and ASX: LAM.
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.
For further information: Marc Henderson, President and Chief Executive Officer, Toronto, Canada, +1 (416) 599 7363