RKLAND LAKE, ON, April 6 /CNW/ - Uranium City Resources Inc. ("UCR" or
the "Company") (TSX VENTURE: UCR) is pleased to announce that it has further
increased the offering previously announced in its April 3rd and April 5th
2006 press releases to $4.830 million. The offering will now consist of the
issuance of up to $1.965 million of units (the "Units") priced at $0.35 per
Unit and up to $2.865 million of flow-through units ("Flow-Through Units) at
$0.40 per Flow-Through Unit. Each Unit will consist of one common share and
one half of one common share purchase warrant (a "Series A Warrant"). Each
full Series A Warrant will entitle the holder to purchase one additional
common share at $0.40 for a period of 18 months following the closing of the
offering. Each Flow-Through Unit will consist of one "flow-through" share and
one half of one common share purchase warrant (a "Series B Warrant"). Each
full Series B Warrant will entitle the holder to purchase one additional
common share at $0.45 for a period of 18 months following the closing of the
offering.
Northern Securities Inc. will act as agent for the offering (the "Agent")
and will be entitled on closing to a cash commission equal to 7% of the
aggregate gross proceeds raised under the offering. The Company will also
grant to the Agent non-assignable warrants ("Agent Warrants") equal in number
to 10% of the number of Units and Flow-Through Units sold under the offering.
Each Agent Warrant will entitle the holder thereof to acquire one Unit at a
price of $0.35 per Unit for a period of 18 months following the closing of the
offering.
The securities issued under the offering will be subject to a four-month
hold period.
The proceeds will be used for exploration and development purposes of the
Company's land holdings in Northern Saskatchewan as well as for general
working purposes.
Forward looking statements:
This news release contains certain forward-looking statements. These
forward-looking statements are subject to a variety of risks and uncertainties
beyond UCR's ability to control or predict, which could cause actual events or
results to differ materially from those anticipated in such forward-looking
statements. Although UCR believes that the assumptions inherent in the
forward-looking statements are reasonable, undue reliance should not be placed
on these forward-looking statements. For further information please contact:
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
