Laramide Announces Proposed Private Placement

CNW Group

TORONTO , Dec. 3, 2013 /CNW/ - Laramide Resources Ltd. ("Laramide" or the "Company") is pleased to announce that it has arranged a proposed non-brokered private placement (the "Offering") of up to 5,000,000 units (the "Units") of the Company at a price of $0.40 per Unit, for aggregate gross proceeds of $2.0 million .

Each Unit will consist of one common share in the capital of the Company and one-half (1/2) of one non-transferable share purchase warrant (each whole warrant a "Series A Warrant"), with each Series A Warrant to entitle the holder to purchase one additional common share at a price of $0.60 for a period of 18 months from the date of closing of the Offering, provided that, in the event the closing price of the Company's shares as traded on the Toronto Stock Exchange is $0.80 or greater for a period of 20 consecutive trading days, the Company may give notice of an earlier expiry of the Series A Warrants, in which case they would expire 30 calendar days from the giving of such notice; provided further that, in the event a subscriber exercises any Series A Warrants during the term thereof, the Company will issue to that subscriber that number of Series B Warrants equal to the number of Series A Warrants exercised, with each Series B Warrant to entitle the holder to purchase one additional common share at a price of $0.80 for a period of 3 years from the date of closing of the Offering.

The closing of the Offering is expected to occur on or about December 19, 2013 and is subject to the completion of formal documentation and receipt of regulatory approval, including the approval of the Toronto Stock Exchange. The Units will be offered on a private placement basis and will be subject to a four-month hold period. Insiders of the Company will be participating in the Offering.

The Company plans to use the proceeds of the Offering to advance its Westmoreland project in Australia , and for general corporate purposes.

As a result of the Offering the Company will not proceed at this time with the previously announced securities purchase agreement with The Lind Partners Canada, LLC.

To learn more about Laramide, please visit the Company's website at www.laramide.com.

About Laramide:

Laramide is engaged in the exploration and development of high-quality uranium assets. Its wholly owned uranium assets are in Australia and the United States . Laramide's portfolio of advanced uranium projects have been chosen for their production potential. Its flagship project, Westmoreland , in Queensland, Australia , is one of the largest projects currently held by a junior mining company. Its U.S. assets include La Jara Mesa in Grants, New Mexico , and La Sal in the Lisbon Valley district of Utah . Its portfolio also includes joint venture, strategic equity positions and royalty participation in uranium development and exploration companies that provide additional geographic diversification and uranium exposure for shareholders.

This press release contains forward-looking statements.  The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information.  Certain material factors or assumptions ere applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.

SOURCE Laramide Resources Ltd.

Contact:

Marc Henderson, President and CEO 
Toronto, Canada +1 (416) 599 7363

Greg Ferron, Vice-President, Investor Relations
Toronto, Canada   +1 (416) 599 7363

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