Energy Metals Corporation
TSX VENTURE : EMC

Energy Metals Corporation

April 07, 2006 14:58 ET

Energy Metals Announces Completion of $30,250,000 Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 7, 2006) - Energy Metals Corporation (TSX VENTURE:EMC) ("EMC or the "Company") announced today the closing of the brokered portion of its previously announced private placement financing for gross proceeds of $30,250,000.

The Company's brokered financing announced March 17, 2006 of 4,000,000 units with an over allotment of 1,500,000 units, was fully subscribed, totaling gross proceeds of $30,250,000. Sprott Securities Inc. and GMP Securities L.P. acted as the Agents for this Offering.

Each unit consists of 1 common share and 1/2 a share purchase warrant. Each whole warrant is exercisable for a period of two years from the closing date, into 1 common share of the Company at a price of $6.50 per share. The Company shall have the right, 180 days after Closing, to call the outstanding warrants should the common shares trade above $7.50 for 20 consecutive trading days.

The Agents received an aggregate of $1,210,000 in cash commissions and an aggregate of 220,000 Compensation Options. Each Compensation Option is exercisable for a period of 2 years from the closing date, into 1 common share of the Company at a price of $5.50 per share.

All of the securities are subject to a hold period expiring August 7, 2006.

The closing of the non-brokered portion of the private placement is expected to close shortly.

Proceeds from the brokered and non-brokered private placement will be used to fund further exploration and development of the La Palangana uranium property in Texas, refurbishment of the recently acquired Hobson Central ISL uranium processing facility, the advancement of its Wyoming properties and for general corporate purposes.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

Energy Metals is a Canadian listed company involved in developing resources to power the 21st century. The Company has adopted a corporate strategy to focus on the acquisition and development of uranium assets in politically favorable and mining-friendly jurisdictions within the United States to take advantage of growing electrical energy needs in the U.S. and worldwide. This increasing consumption is occurring at a time when uranium mine supplies are dwindling and inventories are being depleted.


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

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