Laramide Resources Announces Amendment to Credit Facility and Convertible Debenture Financing /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO
Laramide Resources Announces Amendment to Credit Facility
and Convertible Debenture Financing
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA
ONLY AND IS NOT INTENDED FOR DISTRIBUTION
TO
UNITED STATES
NEWSWIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES
./
Listed (TSX:LAM; ASX:LAM)
TORONTO
,
Dec. 19, 2017
/CNW/ - Laramide Resources Ltd. ("
Laramide
" or the "
Company
") is pleased to announce the Company and its
lenders with Extract Advisors LLC acting as agent for and on behalf of the lenders (the "
Agent
"), have entered into a binding term sheet to amend
(the "
Amended Loan
") the terms of the Company's existing
US$3,000,000
term loan (the "
Loan
"), including, among other amendments (i)
extending the maturity date to such date that is four years from the effective date of the Amended Loan, (ii) advancing additional funds under the
Amended Loan such that the outstanding principal, together with the previously outstanding principal under the Loan, will be up to
US$5,000,000
(with a minimum commitment of
US$4.5M
), (iii) decreasing the interest rate to 7% per annum, and (iv) providing that the outstanding principal be
convertible into common shares of the Company at a price of
C$0.60
per share. The effective date of the Amended Loan is anticipated to be
December 29, 2017
.
Additionally, the Company is pleased to announce an offering (the "
Offering
") of unsecured convertible debentures ("
Debentures
") for proceeds
of up to
US$2,000,000
. The aggregate proceeds of the Amended Loan and the Debenture will not exceed
US$6,500,000
. Each Debenture shall
bear an interest rate identical to that under the Amended Loan, and be convertible into common shares of the Company at a price of
C$0.60
per
common share. In addition, for each
$100,000
of principal convertible debenture subscribed for under the Offering, the subscriber will be issued
20,000 common share purchase warrants (each, a "
Warrant
"). Each Warrant will be exercisable for one common share at a price of
C$0.75
for
a period of three years from the closing date of the Offering. In lieu of Warrants, the investor can elect to take a commitment fee of 2.5% paid on
the closing date of the Offering. The Offering may include participation by both the public and insiders of the Company. The Offering is expected
to close in
January 2018
.
The Amended Loan and the Offering each remain subject to customary conditions including the approvals of the Toronto Stock Exchange and the
Australian Securities Exchange, if applicable.
Use of proceeds will be used to make the Company's commitments to Westwater Resources Inc. (formerly Uranium Resources, Inc.) related to
the
Church Rock
acquisition, to further advance the
Church Rock
and
Crownpoint
projects and for general corporate purposes.
Marc Henderson
, Laramide's President and Chief Executive Officer, stated, "These financing initiatives significantly improve our balance sheet and
financial flexibility and should allow us to return to a more aggressive posture with respect to the development of our asset base in 2018. We
believe such an approach is now warranted as the spot uranium market is already visibly improving as a result of the production cutbacks recently
announced by certain of the industry's largest producers, and we expect further material tightening next year as the market finally rebalances.
Laramide's strategy of ownership and development of lower technical risk, low cost uranium projects in stable political jurisdictions remains
unchanged and should benefit from this improving macro environment."
The securities issued to be pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in
the United States
or to, or for the account or benefit of, U.S. persons absent registration or an
applicable exemption from the registration requirements. 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.
To learn more about Laramide, please visit the Company's website at
www.laramide.com
.
Follow us on Twitter @LaramideRes
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 recently acquired
Church Rock
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.
Forward-looking Statements and Cautionary Language
This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or
results to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and
disclaims any legal liability to the contrary.
SOURCE
Laramide Resources Ltd.
View original content: http://www.newswire.ca/en/releases/archive/December2017/19/c3609.html
%SEDAR: 00003540E
For further information:
Marc Henderson, President and Chief Executive Officer, Toronto, Canada, +1 (416) 599 7363; Bryn Jones, Chief
Operating Officer, Brisbane, Australia, P: (07) 3831 3407; Greg Ferron, Vice-President, Investor Relations, Toronto, Canada, +1 (416) 599
7363
CO: Laramide Resources Ltd.
CNW 07:00e 19-DEC-17