Mega Uranium Ltd.

Mega Uranium Ltd.

October 06, 2009 15:35 ET

Mega Uranium Announces Proposed Public Offering of Units

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2009) -


Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to announce that it has filed a preliminary short form prospectus today with Canadian securities regulatory authorities in connection with a proposed public offering of units. Each unit will consist of one common share of Mega and one-half of one common share purchase warrant, each whole common share purchase warrant entitling the holder to acquire one common share of Mega, for a period of 5 years following closing of the offering (subject to acceleration under certain circumstances). Pricing of the units and the exercise price of the warrants will be determined in the context of market conditions prior to filing the final short form prospectus.

The offering will be underwritten by a syndicate of underwriters led by RBC Capital Markets and UBS Securities Canada Inc., and including Macquarie Capital Markets Canada Inc., Thomas Weisel Partners Canada Inc., Haywood Securities Inc., Salman Partners Inc. and Dundee Securities Corporation.

The units will be offered by way of a short form prospectus in each of the Provinces and Territories of Canada, except Quebec, and will also be offered on a private placement basis in certain jurisdictions outside of Canada and in the United States pursuant to applicable registration and prospectus exemptions.

Mega intends to use the net proceeds of the offering for the completion of feasibility studies in respect of its Lake Maitland Project, and the development of the Project, and for general corporate purposes.

Completion of the offering is subject to the satisfaction of a number of conditions, including receipt of all necessary regulatory approvals, including the Toronto Stock Exchange.

The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Mega Uranium
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada, Argentina, Bolivia, Colombia, Mongolia and Cameroon. Further information on Mega can be found on the company's website at Mega Uranium's Ben Lomond and Maureen uranium resources are subject to a Queensland State Government policy that presently prohibits the mining of uranium.

Cautionary Statement Regarding Forward-Looking Information

Certain information contained in this press release constitutes "forward-looking information", which is information regarding possible events, conditions or results of operations that is based upon assumptions about future economic conditions and courses of action. All information other than matters of historical fact may be forward-looking information. In some cases, forward-looking information can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is not limited to, information concerning details of the public offering and related private placements, including our anticipated use of the proceeds.

By its nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to differ materially from those expressed or implied by such forward-looking information. Some of the risks and other factors that could cause actual results to differ materially from those expressed in the forward-looking information contained in this release include, but are not limited to: the possibility that the public offering will not be completed as contemplated, or at all, because the necessary regulatory approvals are not received or other conditions to completion of the offering are not satisfied, and the possibility that we have to allocate proceeds to other uses or reallocate proceeds differently among the anticipated uses due to changes in project parameters or other unforeseen circumstances associated generally with the unpredictability of exploration and development activities.

Although we have attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking information, readers are cautioned that this list is not exhaustive and there may be other factors that we have not identified. Readers are cautioned not to place undue reliance on forward-looking information contained in this release. Forward-looking information is based upon our beliefs, estimates and opinions as at the date of this release, which we believe are reasonable, but no assurance can be given that these will prove to be correct. Furthermore, we undertake no obligation to update or revise forward-looking information if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law. All forward-looking information contained in this release is expressly qualified by this cautionary note.

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