Powertech Uranium Corp.

Powertech Uranium Corp.

March 02, 2011 09:15 ET

Powertech Announces Pricing of Public Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2011) -


POWERTECH URANIUM CORP. (TSX:PWE)(FRANKFURT:P8A) ("Powertech" or the "Company") (Vancouver, BC) is pleased to announce that it has priced the offering described in its preliminary prospectus filed with the securities regulators in each of the provinces of British Columbia, Alberta and Ontario on February 8, 2011. The offering will consist of a minimum of 37,234,043 units (each, a "Unit") at a price of $0.47 per Unit for gross proceeds of $17,500,000 and a maximum of 47,872,340 Units at a price of $0.47 per Unit for gross proceeds of $22,500,000.

Each Unit will consist of one common share of the Company (each, a "Share") and one half of one common share purchase warrant. Each whole warrant (a "Warrant") will entitle the holder to purchase one Share at an exercise price of $0.60 for two years following the closing of the offering, provided that, if at any time after the date that is six months and one day following the closing of the offering, the daily volume-weighted average price of the Shares on the Toronto Stock Exchange (the "TSX"), or on any other stock exchange on which such Shares may be principally traded at the time, is equal to or greater than $1.20 per Share for a period of 20 consecutive trading days, the Company may, within five days of such event, accelerate the expiry date of the Warrants by giving notice to the holders thereof. In such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company. 

A syndicate of agents led by Salman Partners Inc. and including Dundee Securities Ltd. have been engaged in respect of the offering. The offering is subject to certain conditions, including TSX approval and the closing of a refinancing agreement with Société Belge de Combustibles Nucléaires Synatom SA ("Synatom"), which is subject to shareholder approval.

The Company intends to use the net proceeds of the offering for payment of $12,500,000 to Synatom in connection with the previously disclosed refinancing agreement with Synatom, the completion of the permitting for its Dewey-Burdock Project and for general working capital purposes.

The Units, Shares and Warrants offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release 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.


Richard F. Clement Jr., President & CEO

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

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