Laramide Resources launches secondary offering and ASX co-listing
TORONTO, Jan. 31, 2013 /CNW/ - Laramide Resources Ltd. ("Laramide") (TSX:LAM)
is pleased to announce that it has lodged a prospectus ("Prospectus") with the
Australian Securities and Investment Commission ("ASIC") for a minimum of
A$8,500,000 up to a maximum of A$10,200,000 by way of an Australian initial
public offering (the "Offering"), ahead of a planned co-listing of
its shares on the Australian Securities Exchange ("ASX") targeted for March
Bell Potter Securities Limited is the lead manager for the Offering (the "Lead
Manager"), which will consist of between 10,000,000 and 12,000,000 CHESS
Depository Receipts ("CDIs") to be issued at A$0.85 per CDI (approximately
C$0.89), to raise a minimum of A$8,500,000 up to a maximum of A$10,200,000
before expenses of the Offer. Subject to regulatory approval, each CDI will be
equivalent to and exchangeable for one common share in the capital of
Laramide. The Toronto-based company's common shares will continue to trade on
Toronto Stock Exchange (TSX) under its "LAM" symbol. The Company also intends
to apply to the ASX for admission to the official list of the ASX and for
quotation of its CDIs for trading.
The CDIs will be tradable on the ASX upon listing and will initially be
subject to a four-month plus one day restriction from resale into Canada or to
Canadian investors, and cannot be resold into Canada during such period,
unless an exemption is available from the applicable prospectus requirements
in Canada. The Company will offer CDIs to institutional and professional
investors in private placements in countries agreed with the Lead Manager for
the Offering, including Australia, Canada, Hong Kong, New Zealand, Singapore,
United Kingdom and the United States.
"With the Company's flagship Westmoreland project and recent Murphy
farm-in/joint venture with Rio Tinto, both located in Australia, the ASX
listing provides Laramide increased exposure and access to new investors and
capital in these important regions," said Marc Henderson, President and Chief
Executive Officer, Laramide. "In addition, the timing is ideal to further
enhance the profile of Westmoreland, coinciding with the announcement from the
Queensland Government that uranium mining will be recommencing in the state.
The proceeds of the Offering will enable us to accelerate a number of programs
at our projects in Australia and United States," Mr. Henderson stated.
Funds raised pursuant to the Offering will be used primarily to:
-- Advance the Company's flagship Westmoreland Project in
Queensland, through additional exploration activities,
completion of an updated preliminary economic assessment and
commencement of the permitting process;
-- Commence an exploration program at the recently completed Rio
Tinto Murphy Farm-in and Joint Venture in the Northern
Territory on a number of strategically located uranium
tenements, along strike from Westmoreland;
-- Further advance the La Sal II Uranium Mine Project in Utah,
United States, which recently entered into a toll milling
agreement with Energy Fuels Inc.'s White Mesa mill and for
certain other obligations related to the U.S. assets; and
-- To pay the expenses of the Offering and for general working
The Offering is subject to certain conditions including, but not limited to,
the receipt of all necessary regulatory approvals, including the approval of
the ASX and the TSX. The Offer closing date is expected to occur on February
25 and the official quotation on the ASX will occur in March. Additional
updates on timing will be provided.
The prospectus is intended for use only in connection with the offering of the
Company's securities in Australia and is not to be construed as an offering in
Canada or any other jurisdiction. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any jurisdiction where such an offer, solicitation,
or sale would be unlawful.
About Laramide Resources:
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
ventures in the Northern Territory, Australia, strategic equity positions and
a portfolio of uranium royalties in the Grants Mineral District of New Mexico.
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 are
applied in drawing a conclusion or making a forecast or projection as
reflected in the forward-looking information.
For further information on Laramide, please visit the company's website
atwww.laramide.com or please contact:
Marc Henderson, President and CEO Toronto, Canada +1 (416) 599 7363
Peter Mullens, Vice President Exploration Brisbane, Australia +61 (7) 3831 3407
Greg Ferron, Vice-President, Corporate Development and IR Toronto, Canada
+1 (416) 599 7363
SOURCE: Laramide Resources Ltd.
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