Laramide Resources Ltd.
TSX : LAM

Laramide Resources Ltd.

December 13, 2006 08:39 ET

Laramide Announces CDN$17,250,000 "Bought Deal" Financing

TORONTO, ONTARIO--(CCNMatthews - Dec. 13, 2006) -

This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States.

Laramide Resources Ltd. ("Laramide") (TSX:LAM) wishes to announce that it has entered into an agreement for a "bought deal" private placement financing with a syndicate of underwriters led by Haywood Securities Inc. and including GMP Securities L.P., Sprott Securities Inc., and Westwind Partners Inc. As contemplated by the agreement Laramide will issue 2,300,000 units (the "Units") at CDN$7.50 per Unit to raise gross proceeds of CDN$17,250,000. Each Unit consists of one common share and one-half of one transferable share purchase warrant, each whole warrant is exercisable for 18 months. Each whole warrant shall be exercisable at a price of CDN$8.75 per share for the first nine (9) months from the closing date; if the Warrants are not exercised within the first nine months of the Closing Date, the exercise price of each outstanding warrant will increase to a price of CDN$9.50 per Share for the remaining nine (9) months of the term of the warrant. The warrants shall not be listed on any stock exchange.

The underwriters have the option to purchase up to an additional 500,000 Units at the offering price until 48 hours prior to closing. Net proceeds of the private placement, will be used to fund the exploration and development of Laramide's Westmoreland project in Australia, and for working capital and general corporate purposes.

The offering is scheduled to close on or before December 29, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

LARAMIDE RESOURCES LTD.

Marc C. Henderson, President & Director

Contact Information

  • Laramide Resources Ltd.
    Marc C. Henderson
    President & Director
    (416) 599-7363
    Website: www.Laramide.com