RKLAND LAKE, ON, April 5 /CNW/ - Uranium City Resources Inc. ("UCR" or
the "Company") (TSX VENTURE: UCR) is pleased to announce that it has increased
the offering announced previously on April 3rd, 2006 press release to $4.250
million from $3. million. The offering will now consist of the issuance of up
to $1.665 million in units (the "Units") priced at $0.35 per Unit and up to
$2.585 million in 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
a common share purchase warrant ("Warrant"). EACH unit will consist of one
share and one half warrant. Each full 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 a Warrant. Each full 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.
The Agent (Northern Securities) will be entitled 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. The securities issued under the Offering will
be subject to a four-month hold period. 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 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. The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of this
release.
