Laramide Resources Ltd.

Laramide Resources Ltd.

January 02, 2007 09:00 ET

Laramide Closes CDN$21,000,000 'Bought Deal' Financing

TORONTO, ONTARIO--(CCNMatthews - Jan. 2, 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) is pleased to announce that on Friday, December 29, 2006 it closed the bought deal offering which was announced on December 12, 2006. The syndicate for the offering was led by Haywood Securities Inc. and including GMP Securities L.P., Sprott Securities Inc., and Westwind Partners Inc. (collectively with Haywood, the "Underwriters").

The originally announced financing consisted of 2.3 million units (the "Units") at a price of CDN$7.50 per unit for gross proceeds of CDN$17.25 million. The Underwriters exercised their option to increase the offering by an additional 0.5 million Units, providing additional gross proceeds of CDN$3.75 million for an aggregate total gross proceeds of CDN$21.0 million.

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.

Net proceeds of the offering, 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 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.


Marc C. Henderson, President & Director

Contact Information

  • Laramide Resources Ltd.
    Marc C. Henderson
    (416) 599-7363