Laramide Receives $7.6 Million From Warrant Exercise Listed
Laramide Receives $7.6 Million From Warrant
Exercise
Listed
(TSX:LAM; ASX:LAM; OTCQX: LMRXF)
TORONTO
,
Jan. 11, 2022
/CNW/ - Laramide Resources Ltd. ("
Laramide
" or the "Company") (TSX:
LAM) (ASX: LAM) (OTCQX: LMRXF) is providing an update on the outcome of the Warrant Holders'
exercise of the Company's
January 5, 2022
, common share purchase warrants.
Laramide is pleased to announce that 16,881,883 or 99.7% of the outstanding warrants to purchase
common shares of the Company that expired on
January 5, 2022
, with a strike price of
45 cents
have been exercised. These exercises included a total of 625,000 warrants exercised by the
Chairman and the CEO collectively and resulted in total proceeds of
$7.6 million
to the Company.
Together with the Company's previous cash balances, and combined with securities available for
sale, Laramide now has in excess of
$10 million
in cash and securities on hand and is essentially
fully funded through 2022, a year that is expected to see increased exploration and development
activity, in alignment with the recovering uranium market.
On
January 6, 2022
, immediately after the exercises, the Company has 200,015,629 common
shares outstanding and fully diluted shares of 229,902,946. Laramide reminds holders of the
40 cent
share purchase warrants, which were attached to the
August 22, 2019
, private placement financing,
that these warrants expire on
February 21, 2022
. A total of 1,635,000 of these warrants remain
outstanding.
Recent uranium market developments
2022 has begun in a very constructive fashion for the uranium market. On the final day of 2021, The
European Commission released to member states for consultation a draft of the complementary
Delegated Act of the EU Taxonomy Regulation covering certain gas and nuclear activities. While
vigorously debated and contested among the European Union's member states, the end result of this
classification process (or "taxonomy") is that the EU seems likely to reclassify nuclear power and
some forms of natural gas as "green" activity, which could allow it to be regarded as sustainable
investment. This would have material implications for both potential government support for future
nuclear power developments and, just as importantly, could increase the likelihood that nuclear
related activities become ESG eligible investments.
The turning tide on public sentiment towards nuclear appears to be gaining momentum – and
influential new adherents – almost weekly now, with
Jack Dorsey
, the founder of Twitter and
Square, the most recent to weigh in when he tweeted on
January 4
th
: "Generating more energy, not
less, increases quality of life for all… #nuclear." Improving public acceptance of nuclear energy as
part of a diverse and resilient domestic energy policy has without doubt been helped by the
increasingly visible commitments of governments globally towards addressing climate change
concerns and achieving net zero emission targets, particularly as these aspirational goals encounter
the reality of meeting large scale demand at affordable prices. The currently unfolding energy crisis
in
Western Europe
appears to be Exhibit A in this process.
And then there is
Kazakhstan
.
In a series of dramatic, unexpected, and tragic events, the nation state of
Kazakhstan
was last week
engulfed by civil unrest – a process which appeared to have similarities to the Arab Spring uprisings
of 2011 – and was predicted by almost nobody. As the single largest producer and supplier of
uranium globally, this situation clearly has the potential to be destabilizing to both the U sector and to
energy markets more broadly, but it is likely far too early to assess any likely outcomes – especially
for the near to medium term. In the case of nuclear and the uranium market, "just in time" inventory
reliance means something quite different than in other parts of the global supply chain but the long
run implications of supplier concentration risk remain the same – and this in a market where
consensus thinking is that a large primary uranium supply deficit already looms in the back half of the
current decade.
Kazakhstan
is situated between
Russia
and
China
, and a supplier of choice to both countries (both
of whom have large and expanding fleets of nuclear power plants), and that geographic reality will
remain irrespective of the political resolution of the current situation. This will very likely dictate some
re-assessment of security of supply concerns by global nuclear utilities. Laramide, with its portfolio
of US and Australian assets, seems well positioned to thrive in this environment and should also
benefit if evolving security of supply concerns translate into greater spot market activity and
aggressive near-term inventory accumulation.
To learn more about Laramide, please visit the Company's website at
www.laramide.com
.
About Laramide Resources:
Laramide is a Canadian-based company with diversified uranium assets strategically positioned in
the United States
and
Australia
that have been chosen for their low-cost production potential.
Laramide's Churchrock and
Crownpoint
properties form a leading In-Situ Recovery (ISR) division
that benefits from significant mineral resources and near-term development potential. Additional U.S.
assets include La Jara Mesa in
Grants, New Mexico
, and
La Sal
in the Lisbon Valley district of
Utah
.
The Company's Australian advanced stage
Westmoreland
is one of the largest uranium projects
currently held by a junior mining company. Laramide is listed on the TSX: LAM and ASX: LAM, and
on the OTCQX: LMRXF.
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.
Actual results, performance or achievement could differ materially from those expressed in, or
implied by, the forward-looking information and, accordingly, no assurance can be given that any
of the events anticipated by the forward-looking information will transpire or occur, or if any of
them do so, what benefits may be derived therefrom and accordingly, readers are cautioned not to
place undue reliance on the forward-looking information.
SOURCE
Laramide Resources Ltd.
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http://www.newswire.ca/en/releases/archive/January2022/11/c3304.html
%SEDAR: 00003540E
For further information:
Marc Henderson, President and Chief Executive Officer, Toronto, Canada,
+1 (416) 599 7363, [email protected]
CO: Laramide Resources Ltd.
CNW 07:30e 11-JAN-22