Uranium City Resources Inc.

August 26, 2005 17:07 ET

Uranium City Resources Inc. Announces Amendment to Prospectus

KIRKLAND LAKE, ONTARIO--(CCNMatthews - Aug. 26, 2005) -

Not for Distribution to U.S. Newswire Services or for Distribution in the United States

Uranium City Resources Inc. (the "Company") announces today in connection with its proposed offering of units (the "Offering"), as described in the Company's prospectus dated July 11, 2005 (the "Prospectus"), that it has changed the price of the "Regular Units" and the "Flow-Through Units" to $0.55 and $0.60, respectively, and that the Regular Units and the Flow-Through Units will be offered for sale in part on an underwritten basis and on a best efforts agency basis. A combination of up to 5,454,545 Regular Units and/or 5,000,000 Flow-Through Units will be offered on an underwritten basis for gross proceeds of $3,000,000 and a combination of up to an additional 3,636,364 Regular Units and/or up to 3,333,333 Flow-Through Units will be offered on a best efforts basis for additional gross proceeds of up to $2,000,000.

In addition, the attributes of the units offered under the Offering have been amended such that each Regular Unit will be comprised of one common share in the capital of the Company (a "Common Share") and one Common Share purchase warrant (a "Regular Unit Warrant") and each Flow-Through Unit will be comprised of one "flow-through" Common Share and one Common Share purchase warrant (a "Flow-Through Unit Warrant").

Each Regular Unit Warrant will entitle the holder to purchase one Common Share for a period of 24 months from the date of closing of the Offering at $0.55; provided that, if at any time the closing trading price of the Common Shares for any 30 consecutive trading days exceeds $1.10, the Company may accelerate the expiry date of the Regular Unit Warrants by giving notice to the holders thereof and in such case the Regular Unit Warrants will expire on the 14th calendar day after the date on which such notice is deemed to have been received by such holders.

Each Flow-Through Unit Warrant will entitle the holder to purchase one Common Share for a period of 24 months from the date of closing of the Offering at $0.60; provided that, if at any time the closing trading price of the Common Shares for any 30 consecutive trading days exceeds $1.20, the Company may accelerate the expiry date of the Flow-Through Unit Warrants by giving notice to the holders thereof and in such case the Flow-Through Unit Warrants will expire on the 14th calendar day after the date on which such notice is deemed to have been received by such holders.

In connection with the proposed changes to the Offering, the Company has filed an amendment to the Prospectus (the "Amendment") dated August 19, 2005 with the securities regulatory authorities in Saskatchewan, Ontario, British Columbia and Alberta.

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

Contact Information

  • Uranium City Resources Inc.
    Robert J. Kasner
    (705) 567-5351
    (705) 567-5557 (FAX)
    kasner1@ntl.aibn.com
    or
    Uranium City Resources Inc.
    David Leng, B.Geol.(Hons)
    Investor Relations
    (905) 973-2087
    david_m_leng@yahoo.ca