Laramide Completes Homestake Acquisition and Closes $1.4 Million Private Placement Laramide Resources Ltd.
TORONTO, ONTARIO--(CCNMatthews - Nov. 8, 2005) - Further to the Company's news release of August 9, 2005, Laramide Resources Ltd. (TSX VENTURE:LAM)("Laramide") is pleased to announce that it completed the acquisition of the La Jara Mesa, Los Ochos and Melrich uranium properties in the western United States from Homestake Mining Company of California and La Jara Mesa Mining Company (collectively, "Homestake") both being wholly-owned subsidiaries of Barrick Gold Corporation. Pursuant to the closing of the transaction, Laramide paid Homestake a total of US $1,000,000 with a further US $2,750,000 payable upon achieving certain milestones tied to the permitting of the projects and commencement of commercial production. In addition, Laramide has committed to expend US $1,500,000 over the next two years on the properties and to pay a royalty of US $0.25 per pound U3O8 on any production in excess of eight million pounds from the La Jara property. The acquisition represents the first closing of the Homestake properties with a second closing to acquire Homestake's La Sal property to occur on or before November 7, 2006.
Laramide further reports that, on Wednesday, November 2, 2005, it closed a non-brokered private placement offering of 400,000 units ("Units") at a price of $3.50 per Unit for gross proceeds to Laramide of $1,400,000. The private placement was entered into for the benefit of certain European institutional shareholders of Laramide who did not have the opportunity to participate in Laramide's brokered private placement which closed on September 30, 2005.
Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of Cdn$4.05 for a period of 24 months following closing. All shares issued at closing and shares issuable upon exercise of the warrants are subject to a four-month hold period expiring on March 2, 2006.
Proceeds of the private placement will be used to fund the exploration and development of Laramide's Westmoreland project in Australia, certain milestone payments for the Homestake project and for working capital and general corporate purposes. A finders' fee of $21,000 was paid to Dundee Securities Corporation as part of the private placement.
These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) absent registration or unless an exemption from the registration requirements is available. 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 state in which such offer, solicitation or sale would be unlawful.
Laramide Resources Ltd. is a Toronto-based resource company specializing in the acquisition and development of mining projects globally. Laramide has a diverse portfolio of assets - all of which are leveraged to improving commodity fundamentals. At present, Laramide's key projects are located in Australia, United States and Canada, with lesser interests and investments in Argentina, China and Mexico.
Disclosure regarding forward-looking statements
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
Shares Outstanding: 44,402,122
FOR FURTHER INFORMATION PLEASE CONTACT:
Laramide Resources Ltd. Marc C. Henderson President (416) 599-7363
www.Laramide.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release
Source: CCN Matthews (November 8, 2005 - 10:15 AM EST)
