Uranium exploration company Extract Resources has completed its previously announced private placement worth $40.3 million as part of a $91 million capital raising to accelerate exploration activities at its Rossing South project in Namibia.
Close to a 20 per cent discount on the company's trading price at thge end of August was offered on the placement, priced at $7.75 per share.
The company's primary focus is in Namibia where its principal asset, the wholly-owned Husab Uranium Project, is located which contains two known uranium deposit areas: Rossing South and Ida Dome.
Full announcement below:
EXTRACT RESOURCES COMPLETES A$40.3 MILLION PRIVATE PLACEMENT
South Perth, Western Australia - 16 September 2009: Extract Resources Ltd ("Extract" or the "Company") (ASX / TSX: EXT) is pleased to announce that it has successfully completed its previously announced underwritten private placement ("Placement") of special warrants ("Special Warrants") for gross proceeds of A$40.3 million.
The underwriters, BMO Nesbitt Burns Inc. and Haywood Securities Inc. ("Underwriters"), have placed 5.2 million Special Warrants at a price of A$7.75 per Special Warrant. The Underwriters provided notice that the escrow release conditions relating to the Placement had been satisfied. Proceeds of the Placement were provided to Extract.
Each Special Warrant entitles the holder to acquire one ordinary share (an "Ordinary Share") of Extract for no further consideration.
Each Special Warrant will be automatically exercised for no additional consideration into one Share on a one-for-one basis at 5:00 p.m. (Toronto time) on the earlier of the following dates: (i) the third business day after the date ("Qualification Date") on which a receipt is issued by the securities regulatory authorities in each of the provinces in Canada other than Quebec ("Qualifying Jurisdictions") for a final prospectus qualifying the Ordinary Shares to be issued on exercise of the Special Warrants; and (ii) the date which is four months and a day after the closing date ("Closing Date") of the Placement, namely January 16, 2010.
The Special Warrants are subject to resale restrictions in Canada for a period of four months from the closing date and can not be exercised prior to the automatic exercise date.
Extract will use commercially reasonable best efforts to file and obtain a receipt for a prospectus in all Qualifying Jurisdictions within 30 days. In the event the Clearance Date has not occurred by 75 days after the Closing Date, each unexercised Special Warrant will thereafter entitle the holder to acquire 1.05 Ordinary Shares.
