Hathor Exploration Limited
TSX VENTURE : HAT

Hathor Exploration Limited

April 04, 2006 09:27 ET

Hathor's Offer Accepted by Roughrider Shareholders

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2006) - Hathor Exploration Limited (TSX VENTURE:HAT) ("Hathor" or the "Company") is pleased to announce that its offer for all of the issued shares of Roughrider Uranium Corp. ("Roughrider") has been accepted by holders of more than 98.9% of the issued shares of Roughrider. Hathor anticipates completing the acquisition of 100% of the shares within several days. Roughrider is a private company holding over 1,000,000 acres of strategically located uranium dispositions in the Athabasca Basin.

The offer announced March 15, 2006, consisted of one half of one share and one eighth of a share purchase warrant of Hathor for each share of Roughrider. One whole share purchase warrant will entitle the holder to purchase one share of Hathor at the price of $0.55 per share for a term of two years. Roughrider currently has 30,780,000 shares outstanding, making the total number of shares to be issued by Hathor for this acquisition 15,390,000, prior to the exercise of any of the share purchase warrants. In addition, the shareholders of Roughrider will be entitled to receive a royalty equal to 2% of the Net Smelter Returns from each mineral property currently held by Roughrider. This royalty shall be based on Roughrider's interest in each such property.

Hathor is conducting a concurrent non-brokered private placement, which has been over-subscribed, raising gross proceeds of $3,125,000. The private placement consists of 2,500,000 flow-through shares at $0.45 per share and 5,000,000 non flow-through units at $0.40 per unit, each unit comprising one common share and one half of a share purchase warrant, with each whole warrant exercisable at $0.55 per share for a period of two years. The warrant will have a forced conversion provision if the shares trade at a price of $1.00 or more for 10 consecutive trading days. Closing of the private placement is subject to the completion of the acquisition of the Roughrider shares.

The Company is currently waiting for the final copies of the NI 43-101 reports on the Russell Lake and Russell South properties; upon completion the Company will prepare a Filing Statement for submission to the TSX Venture Exchange. Upon acceptance of the Filing Statement by the Exchange, Hathor shares and warrants will be delivered to the Roughrider shareholders and the private placement will close.

For more information on Hathor, its projects and a map of Roughrider's uranium properties please visit our web site at http://www.hathor.ca or contact Stephen Stanley at 604 684 6707.

Hathor Exploration Limited

"Stephen G. Stanley"

Stephen G. Stanley, Director

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

Contact Information

  • Hathor Exploration Limited
    Stephen G. Stanley
    Director
    (604) 684-6707
    (604) 684-9277 (FAX)
    www.hathor.ca