Blue Sky Uranium Corp.

Blue Sky Uranium Corp.

March 23, 2007 12:18 ET

Blue Sky Closes Short Form Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2007) - Blue Sky Uranium Corp. (the "Company") (TSX VENTURE:BSK)(FRANKFURT:MAL)(WKN:A0MKXP) is pleased to announce that it has closed its financing by way of short form offering document (the "Offering") with Canaccord Capital Corporation ("Canaccord") announced to the Company of $2,000,000. The Company issued an aggregate of 2,000,000 units (each a "Unit") at a purchase price of $1.00 per Unit. Each Unit consists of one common share in the capital of the Company (a "Common Share") and one half of one transferable common share purchase warrant (each a "Warrant"). Each whole Warrant entitles the holder to acquire one additional Common Share at an exercise price of $1.30 per Common Share until March 23, 2009. The TSX Venture Exchange (the "Exchange") has approved the listing of the Warrants on the Exchange and trading in the Warrants commenced at the opening of the Exchange today. The net proceeds received by the Company will be used to fund on-going work programs on the Company's properties and for general working capital purposes.

Canaccord received a cash commission equal to 8% of the gross proceeds of the sale of Units under the Offering and agent's options entitling it to subscribe for 200,000 units (each an "Agent's Unit") at an exercise price of $1.00 per Agent's Unit until March 23, 2009. Each Agent's Unit will consist of one Common Share and one half of one non-transferable common share purchase warrant (an "Agent's Warrant"), each whole Agent's Warrant entitling the Agent to acquire one additional Common Share until March 23, 2009 at an exercise price of $1.30 per Common Share. In addition, Canaccord received a corporate finance fee payable by the issuance of 60,000 Common Shares and an administration fee.

The Company anticipates closing the private placement financing (the "Private Placement") of up to 1,000,000 units to raise aggregate gross proceeds to the Company of up to $1,000,000, announced on February 28, 2007 concurrently with the announcement of the Offering, in the near future. The Company has granted Canaccord an over-allotment option in connection with the Private Placement, whereby Canaccord may obtain subscriptions for up to an additional 300,000 units with the same terms as the other units issued under the Private Placement.


Nick DeMare, Chief Financial Officer

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. Investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Blue Sky Uranium Corp.
    Sean Hurd
    President & CEO
    1-800-901-0058 or (604) 687-1828
    (604) 687-1858 (FAX)