Owner
Post by Franko10 ™ on Mar 3, 2006 9:08:02 GMT -5
Magnum Uranium Completes $4.8 Million Financing
06:00 EST Friday, March 03, 2006
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 3, 2006) -
NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMMINATION IN THE UNITED STATES
Magnum Uranium Corp. ("Magnum" or "the Company") (TSX VENTURE:MM) is pleased to announce that it has closed a previously announced private placement financing led by Pacific International Securities Inc. (the "Agent") for gross proceeds of $4,803,660.
The proceeds of the offering will be used to fund exploration programs on the Company's uranium projects in the United States and Canada and for general working capital. The Company will be conducting exploration programs at its Stanley, Cedar Mountain and Lye uranium projects in the United States that will include a combination of radiometric surveys, track etch surveys, geologic mapping and drilling programs. In Canada, the Company intends to complete an airborne electromagnetic survey and follow-up geophysical analysis on its 416,000 acre land package in the Athabasca Basin. These projects are currently in the planning stage, and will be undertaken beginning in April.
The financing consists of 3,409,200 units of the Company (the "Units") at price of $1.05 per Unit and 1,020,000 flow-through units of the Company (the "FT Units") at a price of $1.20 per FT Unit. Each Unit consists 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.
As consideration for acting as Agent, the Company paid to the Agents a commission of 7%, payable in a combination of cash and Units having the same terms as the Units of the offering. In addition, the Company paid the Agents compensation options equal in number to 7% of the aggregate number of Units and FT Units sold under the Offering, entitling the Agent to purchase, at an exercise price equal to $1.25, one common share for a period of 2 years.
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 securities issued, together with any issued upon the exercise of underlying warrants, are subject to a four month hold period expiring July 3, 2006.
Mr. Craig Lindsay, Magnum's President & CEO, states: "Upon closing of this private placement, Magnum has working capital of approximately $6.6 million. Our strong cash position will allow us to implement a comprehensive range of planned exploration programs on our existing properties, as well as provide capital to pursue selective acquisitions as opportunities are identified."
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 dissaproved of the contents herein.
06:00 EST Friday, March 03, 2006
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 3, 2006) -
NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMMINATION IN THE UNITED STATES
Magnum Uranium Corp. ("Magnum" or "the Company") (TSX VENTURE:MM) is pleased to announce that it has closed a previously announced private placement financing led by Pacific International Securities Inc. (the "Agent") for gross proceeds of $4,803,660.
The proceeds of the offering will be used to fund exploration programs on the Company's uranium projects in the United States and Canada and for general working capital. The Company will be conducting exploration programs at its Stanley, Cedar Mountain and Lye uranium projects in the United States that will include a combination of radiometric surveys, track etch surveys, geologic mapping and drilling programs. In Canada, the Company intends to complete an airborne electromagnetic survey and follow-up geophysical analysis on its 416,000 acre land package in the Athabasca Basin. These projects are currently in the planning stage, and will be undertaken beginning in April.
The financing consists of 3,409,200 units of the Company (the "Units") at price of $1.05 per Unit and 1,020,000 flow-through units of the Company (the "FT Units") at a price of $1.20 per FT Unit. Each Unit consists 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.
As consideration for acting as Agent, the Company paid to the Agents a commission of 7%, payable in a combination of cash and Units having the same terms as the Units of the offering. In addition, the Company paid the Agents compensation options equal in number to 7% of the aggregate number of Units and FT Units sold under the Offering, entitling the Agent to purchase, at an exercise price equal to $1.25, one common share for a period of 2 years.
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 securities issued, together with any issued upon the exercise of underlying warrants, are subject to a four month hold period expiring July 3, 2006.
Mr. Craig Lindsay, Magnum's President & CEO, states: "Upon closing of this private placement, Magnum has working capital of approximately $6.6 million. Our strong cash position will allow us to implement a comprehensive range of planned exploration programs on our existing properties, as well as provide capital to pursue selective acquisitions as opportunities are identified."
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 dissaproved of the contents herein.
