Centram Exploration Ltd.
NEX BOARD : CNA.H

February 26, 2007 15:23 ET

Centram Arranges $5 Million Private Placement and Grants Options

NORTH VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 26, 2007) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.

Centram Exploration Ltd. ("Centram") (NEX BOARD:CNA.H) is pleased to announce that in connection with the recently announced joint venture ("JV") with Crossland Uranium Mines Ltd. ("Crossland") (please see Centram's news release of February 15, 2007), Centram has arranged a non-brokered $5 million private placement.

The private placement will consist of up to 12,500,000 units of Centram at a price of forty cents ($0.40) each. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each full warrant entitles the holder to acquire a common share of Centram at an exercise price of sixty cents ($0.60) for a period of two years from closing. The warrants will be subject to forced conversion if the common shares of Centram close at $1.00 or more for twenty consecutive trading days. The proceeds of the private placement will be held in escrow, and release is conditional upon Centram graduating to Tier 2 of the TSX Venture Exchange.

It is expected that the private placement will close during March, 2007.

In addition, two new directors are to be appointed to the Board of Centram, and Centram will engage the services of two consultants from Crossland. Centram has approved a total of 800,000 incentive stock options for granting to these individuals, which options are granted pursuant to Centram's Incentive Stock Option Plan. Each option will be exercisable at a price of $0.50 and have a term of five years from the date of grant; one-third of the options will vest immediately, one-third will vest in twelve months, and the final one-third will vest in twenty-four months.

All transactions set out in this press release are subject to regulatory approval, due diligence and definitive documentation.

Shares Outstanding: 22,470,562

NEX/TSXV have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Centram Exploration Ltd.
    Richard Mark
    (604) 986-2020
    (604) 986-2021 (FAX)