Forum Uranium Corp.
TSX VENTURE : FDC

Forum Uranium Corp.

April 07, 2011 07:55 ET

Forum Uranium Corp. Announces Up To $5 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2011) -

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Forum Uranium Corp. (TSX VENTURE:FDC) (the "Company") is pleased to announce that it has engaged Dundee Securities Ltd. as lead agent ("Dundee" or the "Lead Agent") to sell, on a best efforts basis, up to 6,667,000 units (the "Units") of the Company at a price of $0.15 per Unit and up to 22,223,000 flow-through common shares (the "Flow-Through Shares") at a price of $0.18 per Flow-Through Share for aggregate gross proceeds of up to $5,000,190. The Units will be comprised of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each warrant will be exercisable into one common share of the Company at a price of $0.25 for a period of 36 months following the date of issue.

The Company has granted Dundee an option to offer up to an additional 15% of the private placement, in any combination of Units and/or Flow-Through Shares, at the respective issue prices, exercisable in whole or in part at any time up to 48 hours prior to the closing date.

The gross proceeds of the Flow-Through Share offering will be used for exploration of the Company's Canadian-based projects and the net proceeds of the Unit offering will be used for general corporate purposes. With respect to the Flow-Through Shares, the Company will renounce Canadian Exploration Expenses with an effective date of no later than December 31, 2011.

The Company has agreed to pay Dundee a commission of 6.5% of the gross proceeds from the sale of the Flow-Through Shares and Units and to issue warrants ("Agent's Warrants") equal to 6.5% of the number of Flow-Through Shares and Units issued. Each Agent's Warrant will entitle the holder, on exercise, to purchase one additional common share of the Company at a price of $0.15 for a period of 24 months from the completion of the private placement.

The private placement is expected to close on or about May 4, 2011. All securities issued in connection with the private placement will be subject to a minimum four month hold period. The private placement is subject to all required approvals, including the approval of the TSX Venture Exchange.

About Forum Uranium

Forum Uranium Corp. is a Canadian-based energy company with a focus on the acquisition, exploration and development of Canadian uranium and rare earth projects. Forum has assembled a highly experienced team of exploration professionals with a track record of mine discoveries for unconformity-style uranium deposits in Canada. The Company has a strategy to discover near surface uranium deposits in the Athabasca Basin, Saskatchewan and the Thelon Basin, Nunavut by exploring on its 100% owned properties and through strategic partnerships and joint ventures. The Company is also evaluating North American rare earth prospects.

ON BEHALF OF THE BOARD

Richard J. Mazur, P.Geo., President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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