Laramide extends Extract convertible loan and enters into new $5M credit facility
Laramide extends Extract convertible loan and
enters into new $5M credit facility
TORONTO
,
Oct. 18, 2024
/CNW/ -
Laramide Resources Ltd.
(
"Laramide"
or the
"Company"
)
(TSX: LAM) (ASX: LAM) (OTCQX: LMRXF), a uranium mine development and exploration company
with globally significant assets in
the United States
and
Australia
, is pleased to announce
that the
Company and its lenders, Extract Capital Master Fund Ltd. and Extract Lending LLC (together, the
"
Lenders
"), with Extract Advisors LLC acting as agent for and on behalf of the Lenders, completed
an amendment to the existing term loan made by the Lenders in favour of Laramide Resources
(
USA
) Ltd. (the "
Term Loan
"), which includes, among other things, (i) an extension of the maturity
date of the Term Loan from
March 31, 2025
to
April 1, 2026
, and (ii)
a new non-convertible
CAD$5
million
standby credit facility (the "
Multi-Draw Facility
") with Extract. The Multi-Draw Facility will
have the same maturity date as the Term Loan and allows for multiple drawdowns. All other terms
of the Term Loan remain unchanged with a 7% coupon and
CDN$0.40
conversion price while the
Multi-Draw Facility, if utilized, will incur interest expense at 12% per annum.
The Multi-Draw Facility will also have a
$50,000
commitment fee (paid on closing) and a 1% standby
fee on the undrawn portion of the Multi-Draw Facility payable quarterly. The Multi-Draw Facility will
not be convertible into common shares of the Company.
In connection with the Multi-Draw Facility, Laramide has agreed to issue the Lenders 750,000
warrants to purchase common shares of the Company exercisable until
October 18, 2027
at a price
per common share equal to 135% of the volume weighted average trading price of the common
shares on the Toronto Stock Exchange for the five trading days prior to closing.
Commenting on the transaction, Laramide's President and CEO
Marc Henderson
said: "We are
pleased for the continuing support of Extract, which has been a long-term shareholder of Laramide
since well before the current uranium bull market began. With many catalysts immediately ahead for
us, including further drill results from our ongoing Australian drilling program and an important
upcoming State election in
Queensland
on
October 26th
, we believe these newly announced
transactions will provide valuable financial flexibility for us going forward and should prove mutually
beneficial."
The issuance of the warrants to the Lenders remains subject to customary conditions including
approval of the Toronto Stock Exchange and the Australian Securities Exchange, if applicable.
To learn more about Laramide, please visit the Company's website at
www.laramide.com.
Follow us on Twitter @LaramideRes
About Laramide Resources Ltd.
Laramide is focused on exploring and developing high-quality uranium assets in Tier-1 uranium
jurisdictions of
Australia
and
United States
. The company's portfolio comprises predominantly
advanced uranium projects in districts with historical production or superior geological prospectivity.
The assets have been carefully chosen for their size, production potential, and the two large projects
are considered to be late-stage, low-technical risk projects.
Forward-looking Statements and Cautionary Language
This release includes certain statements that may be deemed to be "forward-looking statements".
All statements in this release, other than statements of historical facts, that address events or
developments that management of the Company expect, are forward-looking statements. Forward-
looking statements are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "plans", "projects", "intends", "estimates", "envisages", "potential",
"possible", "strategy", "goals", "objectives", or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the
negative of any of these terms and similar expressions. Actual results or developments may differ
materially from those in forward-looking statements. Laramide disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise, save and except as may be required by applicable securities laws.
Since forward-looking information address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not limited to, exploration
and production for uranium; delays or changes in plans with respect to exploration or development
projects or capital expenditures; the uncertainty of resource estimates; health, safety and
environmental risks; worldwide demand for uranium; uranium price and other commodity price and
exchange rate fluctuations; environmental risks; competition; incorrect assessment of the value of
acquisitions; ability to access sufficient capital from internal and external sources; and changes in
legislation, including but not limited to tax laws, royalties and environmental regulations.
SOURCE
Laramide Resources Ltd.
View original content:
http://www.newswire.ca/en/releases/archive/October2024/18/c3469.html
%SEDAR: 00003540E
For further information:
Marc Henderson, President and CEO, Toronto, Canada, +1 (416) 599
7363; Ann Baines, Director, Investor Relations, Toronto, Canada, +1 (647) 832-9904
CO: Laramide Resources Ltd.
CNW 07:30e 18-OCT-24