Abitex Resources Inc. announces acquisition of Central Uranium Corporation
Abitex Resources Inc. announce that it has now completed the acquisition of Central Uranium Corporation as per the terms of a share exchange agreement dated September 12, 2008, the whole subject to final regulatory approval. A total of 13,366,774 Abitex Shares were issued to Central shareholders in consideration for their Central Shares. In addition, 5,585,500 Central purchase warrants were exchanged for Abitex warrants on a “one for one” basis. Each Abitex Warrant is convertible into one Abitex Share for a period ranging from 12 to 24 months from the date of Acquisition, at prices ranging from $0.48 to $1.00 per Abitex Share.
Closing of the Acquisition was subject to completion of a minimum concurrent financing which was satisfied by completion of private placements for aggregate gross proceeds of $5,596,600, including the closing of a $400,000 brokered private placement of subscription receipts on September 15, 2008. In accordance with the terms of the Subscription Receipt Agreement dated July 22, 2008, the Company triggered the conversion of its outstanding subscription receipts into units of the Company, whereby 3,036,000 flow-through subscription receipts issued at $0.60 were converted into 3,036,000 flow-through units (the “FT Units”) and 6,863,637 non flow-through subscription receipts issued at $0.55 were converted into 6,863,637 units (the “Units”). Each FT Unit consists of one flow-through common share and one-half common share purchase warrant. Each Unit consists of one common share and one common share purchase warrant. Each whole warrant entitles its holder to subscribe to one non flow-through common share of the Company for $0.80 for a period of 18 months following closing of the financing. The Company raised nearly CA$ 7.2M in the last few months and is well-positioned to advance its exploration programs.
Concurrently with the closing of the Acquisition, Mr. François Ruel was appointed as a Director of Abitex and was nominated co-chairman of the Board along with Mr. Yves Rougerie, the current President and CEO of Abitex. Prior to founding Central, Mr. Ruel was Sr VP Equity Markets for Desjardins Securities where he was responsible for the institutional divisions and was also a member of the board. Mr. Rougerie is a geologist with over 25 years of practical experience including several years in uranium exploration in the Otish Mountains area of Quebec where he participated in several discoveries. The Company believes the combination of experience and expertise of Mssrs Ruel and Rougerie will be instrumental to the projected growth of Abitex.
Abitex Resources Inc. (TSX-V: ABE ) is an exploration company based in Val d’Or, Quebec. The Company has a growing portfolio of uranium exploration and development properties which include an option to acquire from AREVA and SOQUEM a 50% interest in the “L” deposit in the Otish Mountains region which hosts a significant historical uranium resource and an option to acquire a 100% interest in the nearby Epsilon uranium property. Definition drilling of the “L” deposit is underway at this time. The uranium properties acquired in the Central acquisition comprise over 2,258 km2 of ground in three main project areas (Kangiq, Central Minto and South Bienville) located in northern Quebec. All three properties are under option from Azimut Exploration Inc.