Owner
Post by Franko10 ™ on Feb 2, 2006 9:56:29 GMT -5
Magnum Uranium Announces Brokered Private Placement
09:00 EST Thursday, February 02, 2006
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 2, 2006) -
NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMMINATION IN THE UNITED STATES
Magnum Uranium Corp. (the "Company") (TSX VENTURE:MM) is pleased to announce that it has arranged a brokered private placement of up to CDN$4,170,000 led by Pacific International Securities Inc. (the "Agent"). The offering is subject to regulatory approval.
The financing will consist of up to 3,000,000 units of the Company (the "Units") at price of $1.05 per Unit and up to 850,000 flow-through units of the Company (the "FT Units") at a price of $1.20 per FT Unit. Each Unit will consist of one common share (a "Share") and one-half of one transferable common share purchase warrant (each whole such purchase warrant being a "Warrant"). Each Warrant will be exercisable to purchase a Share of the Company for two years, at a price of $1.35 per Share in year one, and $1.60 per Share in year two. Each FT Unit will consist of one flow-through common share (a "FT Share") and one-half of one common share purchase warrant (each whole such purchase warrant being a "FT Warrant"). Each FT Warrant will be exercisable to purchase a FT Share at a price of $1.50 per FT Share in year one and $1.75 per FT Share in year two.
The Agent shall have the option at any time prior to closing to increase the size of the offering by up to 600,000 Units and 170,000 FT Units.
As consideration for acting as Agent, the Company has agreed to pay to the Agent a commission of 7%, payable, at the election of the Agent, in any combination of cash or Units having the same terms as the Units of the offering. In addition, the Company will pay the Agent compensation options equal in number to 7% of the aggregate number of Units and FT Units sold under the Offering, which will entitle the Agent to purchase, at an exercise price equal to $1.25, one common share for a period of 2 years following the Closing Date.
Proceeds of the flow-through offering will be used for exploration expenditures in Canada that qualify as Canadian Exploration Expenses as defined in the Income Tax Act and will be renounced for the 2006 taxation year. The net proceeds from the Unit offering will be used to conduct exploration on the Company's non-Canadian properties and to provide a suitable working capital reserve.
The Company
Magnum is a Vancouver-based minerals exploration company focused on the acquisition and development of uranium assets in North America. Currently, the Company's primary property holdings are located in the Athabasca Basin, Saskatchewan, Canada and in the Western United States, specifically Wyoming, Utah, Idaho, and Washington.
ON BEHALF OF THE BOARD
Craig T. Lindsay, President & CEO
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Magnum Uranium Corp.
Craig T. Lindsay
President & CEO
(604) 683-2507
(604) 683-2506 (FAX)
info@magnumuranium.com
www.magnumuranium.com
The TSX Venture Exchange has neither approved or disapproved of the contents herein.
09:00 EST Thursday, February 02, 2006
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 2, 2006) -
NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMMINATION IN THE UNITED STATES
Magnum Uranium Corp. (the "Company") (TSX VENTURE:MM) is pleased to announce that it has arranged a brokered private placement of up to CDN$4,170,000 led by Pacific International Securities Inc. (the "Agent"). The offering is subject to regulatory approval.
The financing will consist of up to 3,000,000 units of the Company (the "Units") at price of $1.05 per Unit and up to 850,000 flow-through units of the Company (the "FT Units") at a price of $1.20 per FT Unit. Each Unit will consist of one common share (a "Share") and one-half of one transferable common share purchase warrant (each whole such purchase warrant being a "Warrant"). Each Warrant will be exercisable to purchase a Share of the Company for two years, at a price of $1.35 per Share in year one, and $1.60 per Share in year two. Each FT Unit will consist of one flow-through common share (a "FT Share") and one-half of one common share purchase warrant (each whole such purchase warrant being a "FT Warrant"). Each FT Warrant will be exercisable to purchase a FT Share at a price of $1.50 per FT Share in year one and $1.75 per FT Share in year two.
The Agent shall have the option at any time prior to closing to increase the size of the offering by up to 600,000 Units and 170,000 FT Units.
As consideration for acting as Agent, the Company has agreed to pay to the Agent a commission of 7%, payable, at the election of the Agent, in any combination of cash or Units having the same terms as the Units of the offering. In addition, the Company will pay the Agent compensation options equal in number to 7% of the aggregate number of Units and FT Units sold under the Offering, which will entitle the Agent to purchase, at an exercise price equal to $1.25, one common share for a period of 2 years following the Closing Date.
Proceeds of the flow-through offering will be used for exploration expenditures in Canada that qualify as Canadian Exploration Expenses as defined in the Income Tax Act and will be renounced for the 2006 taxation year. The net proceeds from the Unit offering will be used to conduct exploration on the Company's non-Canadian properties and to provide a suitable working capital reserve.
The Company
Magnum is a Vancouver-based minerals exploration company focused on the acquisition and development of uranium assets in North America. Currently, the Company's primary property holdings are located in the Athabasca Basin, Saskatchewan, Canada and in the Western United States, specifically Wyoming, Utah, Idaho, and Washington.
ON BEHALF OF THE BOARD
Craig T. Lindsay, President & CEO
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Magnum Uranium Corp.
Craig T. Lindsay
President & CEO
(604) 683-2507
(604) 683-2506 (FAX)
info@magnumuranium.com
www.magnumuranium.com
The TSX Venture Exchange has neither approved or disapproved of the contents herein.
