By Sheri Kasprzak
Atlanta, Jan. 21 - Energy Metals Corp. said it will head to the private placement market with a C$3,568,000 offering.
The non-brokered deal includes 2.23 million units at C$1.60 each. The units are comprised of one share and one half-share warrant.
The whole warrants provide for an additional share at C$2 each for two years.
The warrants automatically convert when the company's stock trades at or above C$3 for 10 consecutive trading days. At that time, the warrants must be exercised within 30 days.
Sprott Asset Management will subscribe for 2 million units and Resolute Growth Fund for 130,000 units.
Separately, the company has hired Ran Davidson as its investor relations consultant for a six-month term. He will receive stock options for 50,000 shares at C$1.70 each for two years.
Two other employees of the company have also received stock options for 75,000 shares each at a price of C$1.70 for two years.
In other news, the company has decided not to continue with an option to earn 100% interest in the Bonaparte gold property in British Columbia. The company terminated its agreement with North American Gem Inc.
Elsewhere at Energy Metals, the company appointed Harry Anthony as its operations and production manager.
Vancouver, B.C.-based Energy Metals is a mineral exploration, development and acquisition company. The proceeds from the offering will be used to advance its uranium properties in Arizona, Wyoming, Utah and Nevada; and to acquire additional properties. The remainder will be used for general corporate purposes.
| Issuer: | Energy Metals Corp.
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| Issue: | Units of one share and one half-share warrant
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| Amount: | C$3,568,000
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| Units: | 2.23 million
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| Price: | C$1.60
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$2.00
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| Investors: | Sprott Asset Management (for 2 million units); Resolute Growth Fund (for 130,000 units)
|
| Announcement date: | Jan. 21
|
| Stock price: | C$1.70 at close Jan. 20
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