2007 News Releases
Mega Uranium Ltd. Announces Closing of Unit Financing
February 22, 2007
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Toronto, Ontario, February 22, 2007 – Mega Uranium Ltd. (“Mega”) (MGA:TSX) is pleased to announce that it has closed the unit portion of its bought deal private placement of units and flow-through shares to raise gross proceeds of $30,627,000, as previously announced on February 6, 2007, all pursuant to an underwriting agreement between Mega and Westwind Partners Inc., as lead underwriter on behalf of a syndicate of underwriters (collectively, the “Underwriters”) which includes Canaccord Adams, Raymond James Ltd. and Pacific International Securities Inc. In connection with today’s closing, the over-allotment option was exercised in full by the Underwriters such that Mega issued an aggregate of 3,800,000 units at a price of $6.15 per unit, each unit consisting of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one additional common share of Mega at an exercise price of $7.90 per share until February 22, 2012. In the event that the closing price of the common shares of Mega on the Toronto Stock Exchange is $12.30 per share or greater for 20 consecutive trading days at any time after June 23, 2007, Mega may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such event the warrants will expire on the 30th day after the date upon which such notice is given by Mega. The flow-through common share portion of the offering is scheduled to close on March 6, 2007.
In connection with the closing today as partial consideration for their services rendered in connection with the private placement, Mega also issued to the Underwriters an aggregate of 228,000 compensation warrants, each such compensation warrant entitling the holder thereof to acquire one common share of Mega at a price of $6.15 until August 22, 2008.
The common shares, warrants comprising the units and the compensation warrants have a hold period expiring on June 23, 2007. Proceeds of the sale will be used for exploration and development of current projects and for general corporate purposes. Completion of the financing remains subject to the final approval of the Toronto Stock Exchange.
The securities being offered have not nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Bolivia and Canada. Further information on Mega can be found on the company’s website at www.megauranium.com. Mega Uranium’s Australian uranium properties, including without limitation the Ben Lomond and Maureen properties, are subject to state policies which presently prohibit the mining of uranium in Australia.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please contact:
Mega Uranium Ltd.
Richard Patricio, Vice President Corporate and Legal Affairs
Telephone: (416) 643-7630