Titan Uranium Inc. has completed a brokered private placement of 3,272,750 flow-through units, at a price of $2.75 per unit for total gross proceeds of $9,000,062.50, which was previously reported in Stockwatch on Feb. 27, 2007, and March 2, 2007.
Each unit comprises one flow-through common share of Titan and one-half of one flow-through common share purchase warrant. Each whole warrant entitles the holder to purchase one additional flow-through common share of Titan at a price of $3.25 per flow-through common share until March 27, 2009.
The agents comprise Pacific International Securities Inc., PowerOne Capital Markets Ltd. and Canaccord Adams received a commission of 7 per cent of the gross proceeds, part of which was paid in cash and part of which was paid in commission units having the same terms as the financing units except that they are non-flow-through.
In addition, Titan issued to the agents compensation options equal to 7 per cent of the number of flow-through units sold, each of which is exercisable into one common share of Titan at a price of $3.05 until March 27, 2009. In accordance with applicable securities legislation and policies of the TSX Venture Exchange, all securities issued under the private placement will be subject to a “hold period” expiring on July 28, 2007.
Titan plans to use the gross proceeds from the sale of these units for exploration and development of current projects that will constitute Canadian exploration expenses (as defined in the Income Tax Act) that will be renounced for the 2007 income tax year. In addition, the financing enhances Titan’s financial strength, strengthening the company’s ability to find and develop further merger or acquisition opportunities.