Ucore Uranium Inc.
TSX VENTURE : UCU

Ucore Uranium Inc.

December 15, 2006 08:30 ET

Ucore Uranium Announces Closing of $7.2 Million Private Placement

HALIFAX, NOVA SCOTIA--(CCNMatthews - Dec. 15, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR VIA US NEWSWIRE SERVICES

Ucore Uranium Inc. (the "Company") (TSX VENTURE:UCU) is pleased to announce that the Company has closed the private placement financing (the "Offering") announced on November 21, 2006 and November 23, 2006 offered by a syndicate of agents, co-led by Pacific International Securities Inc. and Canaccord Adams, and including Jones, Gable & Company Limited (the "Agents"). The Corporation raised gross proceeds of $7,201,000 through the sale of 5,000,000 units at a price of $0.76 per unit (the "Units") and 3,580,000 flow-through shares at a price of $0.95 per flow-through share (the "FT Shares"). Each Unit consists of one common share and one half of one common share purchase warrant (each whole warrant a "Warrant"). Each whole Warrant is exercisable into one non-flow through common share at a price of $1.00 per share for a period of eighteen months from the date of issuance.

The Agents received a total commission of 7.0% of the gross proceeds of the Offering which was paid by $232,360.88 in cash and by the issuance of 357,512 Units. The Agents also have been granted 686,400 compensation options (the "Compensation Options") equal in number to 8.0% of the aggregate number of Units and FT Shares sold under the Offering. Each Compensation Option will entitle the Agents to purchase one common share, at an exercise price equal to $1.00 per common share for a period of eighteen months from the date of issuance. The Offering is subject to final exchange and regulatory approvals and all securities issued as a result of the financing will be subject to four-month hold period from the closing date to and including April 14, 2007.

Following the issuance of these shares pursuant to the private placement, the Corporation will have a total of 40,969,512 shares outstanding.

The proceeds raised will be used for exploration expenditures on the Company's projects in Newfoundland, Labrador and Nunavut, to evaluate and potentially acquire additional quality uranium properties, and for general working capital. The flow-through funds will be specifically used for exploration expenditures (as defined in the Income Tax Act (Canada)) and will be renounced for the 2006 taxation year.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities 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 or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Ucore Uranium Inc.
    Mr. Daniel Whittaker
    President and Chief Executive Officer
    (902) 482-5214
    (902) 492-0197 (FAX)