ATHABASCA URANIUM COMPLETES PRIVATE PLACEMENT
Athabasca Uranium Inc. has completed its private placement of flow-through shares and non-flow-through units of the company for aggregate gross proceeds of $636,000.
The company has closed the offering and has issued 3.2 million flow-through common shares at a price of 15 cents per FT share and 1.3 million non-flow-through units consisting of one common share and one-half of one share purchase warrant at a price of 12 cents per NFT unit for aggregate gross proceeds of $636,000. Each whole NFT warrant issued entitles the holder thereof to purchase one common share at a price of 25 cents per share until Aug. 24, 2013. The company will renounce an amount equal to the gross proceeds derived from the sale of the FT shares to the purchasers thereof in accordance with the provisions of the Income Tax Act (Canada).
The company paid certain finders a total cash commission of $41,408 equal to 8 per cent of the proceeds of the sale of certain FT shares and NFT units by such finders and issued 289,387 finders' compensation warrants equal to 8 per cent of the number of FT shares and NFT units sold by such finders. Each finder's warrant entitles a finder to purchase a common share of the company at an exercise price of 25 cents per share until Aug. 24, 2013.
All securities issued in the offering will be subject to a hold period, which expires Dec. 25, 2012. Proceeds of the offering will be used to finance exploration programs on the company's prospective uranium properties located in the Athabasca basin in Saskatchewan and for general working capital and corporate purposes.
