Feb 24 2011
Athabasca Uranium Inc. has announced that it has arranged a private placement in the capital of the Company for aggregate gross proceeds of up to $2,500,000.
The Offering is comprised of up to 5,263,158 flow through units (the "FT Units") at a price of $0.38 per FT Unit and up to 1,428,572 units (the "NFT Units") at a price of $0.35 per NFT Unit. Each FT Unit will consist 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 will entitle the holder to purchase one common share in the capital of the Company (a "Share") at a price of $0.50 per Share for a period of one year from the closing of the Offering. Each NFT Unit will consist of one Share and one share purchase warrant (a "NFT Warrant"). Each NFT Warrant will entitle the holder to purchase one Share at a price of $0.45 per Share for a period of two years from the closing of the Offering.
The Company may pay finders' fees on the Offering within the maximum amount permitted by the policies of the TSX Venture Exchange.
Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
The proceeds from the Offering will be used to fund exploration programs on the Company's prospective uranium properties located in the Athabasca Basin region of northern Saskatchewan and for general working capital and corporate purposes.
Source: Athabasca Uranium Inc.