2007 News Releases
Mega Uranium Ltd. Announces Closing of Flow-Through Financing
March 6, 2007
Toronto, Ontario, February 22, 2007 – Mega Uranium Ltd. (“Mega”) (MGA:TSX) is pleased to announce that it has closed the final flow-through portion of its previously announced bought deal private placement of units and flow-through shares to raise gross proceeds of $35,178,000, all pursuant to an underwriting agreement between Mega and Westwind Partners Inc., as lead underwriter on behalf of a syndicate of underwriters (the “Underwriters”) which included Canaccord Adams, Raymond James Ltd. and Pacific International Securities Inc. In connection with today’s closing, the full over-allotment option was exercised by the Underwriters such that Mega issued an aggregate of 1,600,000 flow-through common shares at a price of $7.38 per share.
In connection with the closing today, Mega also issued to the Underwriters as partial consideration an aggregate of 96,000 compensation warrants, each such compensation warrant entitling the holder thereof to acquire one common share of Mega at a price of $6.15 until September 6, 2008.
The flow-through common shares have a hold period expiring on July 7, 2007. Proceeds of the sale will be used for exploration and development of current projects. 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 applicableexemption 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