Energy Metals Announces Completion of $28,600,000 Non-Brokered Private Placement
Friday April 21, 3:11 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 21, 2006) - Energy Metals Corporation ("EMC" or the "Company") (TSX VENTURE:EMC - News) announced the closing on April 7, 2006 of the brokered portion of its previously announced private placement financing for gross proceeds of $30,250,000.
The Company's non-brokered financing announced March 17, 2006 of 4,000,000 units (the "Units") with an over allotment of 1,200,000 Units, was fully subscribed. Directors, officers and employees of the Company purchased a total of 247,200 Units of the placement totaling $1,359,600 and representing 5% of the non brokered private placement proceeds.
Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable for a period of two years from the closing date, for one common share of the Company at a price of $6.50 per share. The Company shall have the right, 180 days after Closing, to call the outstanding warrants should the common shares trade above $7.50 for 20 consecutive trading days.
In connection with the non-brokered portion of the private placement the Company has paid finders fees totaling $265,700 in cash and issued 47,764 Shares Purchase Warrants to 9 finders. The Share Purchase Warrants are exerciseable into one common share of the Company, at a price of $5.50 per share until April 13, 2008.
All of the securities issued pursuant to the non-brokered private placement are subject to a hold period expiring August 14, 2006.
The gross proceeds for both the brokered private placement, which closed on April 7, 2006, and the non-brokered private placement totaled $58,850,000.
Proceeds from the brokered and non-brokered private placements will be used to fund further exploration and development of the La Palangana uranium property in Texas, refurbishment of the recently acquired Hobson Central ISL uranium processing facility, the advancement of its Wyoming properties, for potential acquisitions and for general corporate purposes.
The Company also wishes to announce that it has granted stock options to directors, officers and employees of the Company in the amount of 450,000 common shares in the capital stock of the Company, at a price of $7.10 per share exercisable up to and including April 21, 2010.
The securities described herein 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 unless registered under the Act or unless an exemption from registration is available.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
