Listed (TSX:LAM; ASX:LAM)
TORONTO, May 21, 2021 /CNW/ - Laramide Resources Ltd.
("Laramide" or the "Company") (TSX: LAM) (ASX: LAM) wishes
to clarify some recent inquiries regarding an upcoming warrant
expiry.
All of the holders of the $0.30
unit financing completed in June 2018
continue to hold a half warrant exercisable at a price of
$0.45 per share until June 20, 2021. The warrant was one of two
warrants exercised in connection with the financing (described as a
"step-up" warrant), but market conditions during the tenure of the
step-up period resulted in the second half of the $0.60 warrant expiring without any exercises by
unit holders. Given improving market conditions and materially more
favorable sentiment towards uranium equities in 2021, all of the
warrants Laramide issued in connection with a series of private
placement financings beginning in 2017 are now in the money and
have begun to contribute to an improved financial picture for the
Company.
The most recent quarterly financial disclosure for the first
quarter ending March 31, 2021 shows a
return to positive working capital and was assisted by warrant
exercises of approximately $1.3
million. This trend has continued into Q2 with warrant
exercises of a further $900,000 in
the current quarter. In total, a further contribution of
approximately $16.5 million would be
forthcoming should all of the currently in the money warrants
ultimately get exercised.
Following a challenging year in 2020 when COVID-19 severely
restricted access to our property portfolio in both Australia and New
Mexico, USA, the Company is pleased to announce work has
resumed towards initiating field programs in both jurisdictions
during the latter half of 2021. The approval process with regard to
a resumption of exploration activities is currently ongoing, and
well advanced, and Laramide plans to provide detailed descriptions
of planned activities once the planning process is complete.
In response to the current recovery underway in the sector,
Laramide Resources President and CEO Marc
Henderson, commented: "Based on the level of interest and
recent performance of uranium equities, the market seems to be
signalling that the long 10-year bear market in our sector is
finally in the rear-view mirror and better prospects lie ahead.
While a uranium spot market price around $30/lb does not yet reflect consensus opinion
that the price needs to move dramatically higher to address a
looming mine supply deficit, it is important to keep in mind that
previous transitions from bear to bull markets in the uranium
sector had similar set-ups. Nuclear power generation remains
one of the longest lead time endeavors that business undertakes,
and price discovery changes in uranium, when they occur, tend to be
rapid and sharp. It should also be noted that, following a 10-year
period of relative indifference and disfavor, nuclear power is now
gaining new adherents and acceptance, including prospective
inclusion in ESG type investment mandates as governments and
opinion leaders recognize that ambitious carbon emission reduction
goals are unlikely to be achieved without nuclear power. An
improving macro environment should continue to assist the market
performance of uranium development equities like Laramide and we
believe we are particularly well positioned to benefit given the
large scale of our resource base and the geopolitically favorable
locations of our assets."
To learn more about Laramide, please visit the Company's website
at www.laramide.com.
About Laramide Resources:
Laramide is a Canadian-based company with diversified uranium
assets strategically positioned in the
United States and Australia
that have been chosen for their low-cost production potential.
Laramide's Churchrock and Crownpoint properties form a leading In-Situ
Recovery (ISR) division that benefits from significant mineral
resources and near-term development potential. Additional U.S.
assets include La Jara Mesa in Grants,
New Mexico, and La Sal in
the Lisbon Valley district of Utah. The Company's Australian advanced stage
Westmoreland is one of the largest
uranium projects currently held by a junior mining company.
Laramide is listed on the TSX: LAM and ASX: LAM.
Forward-looking Statements and Cautionary Language
This release includes certain statements that may be deemed
to be "forward-looking statements". All statements in this release,
other than statements of historical facts, that address events or
developments that management of the Company expect, are
forward-looking statements. Forward-looking statements are
frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "plans", "projects", "intends",
"estimates", "envisages", "potential", "possible", "strategy",
"goals", "objectives", or variations thereof or stating that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions. Actual results or developments
may differ materially from those in forward-looking statements.
Laramide disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, save and except as may be
required by applicable securities laws.
Since forward-looking information address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, exploration and production for
uranium; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
resource estimates; health, safety and environmental risks;
worldwide demand for uranium; uranium price and other commodity
price and exchange rate fluctuations; environmental risks;
competition; incorrect assessment of the value of acquisitions;
ability to access sufficient capital from internal and external
sources; and changes in legislation, including but not limited to
tax laws, royalties and environmental regulations.
Actual results, performance or achievement could differ
materially from those expressed in, or implied by, the
forward-looking information and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
information will transpire or occur, or if any of them do so, what
benefits may be derived therefrom and accordingly, readers are
cautioned not to place undue reliance on the forward-looking
information.
SOURCE Laramide Resources Ltd.