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Energizer Resources Inc. (TSX-V:EGZ - News)(OTC.BB:ENZR - News)(Frankfurt:YE5 - News) ("Energizer"
or the "Company") announces its intention to complete a non-brokered
private placement offering (the "Offering") for gross proceeds of
up to US$15,000,000 plus a 20% over-allotment option. Units are offered at
US$0.45 per Unit. Each Unit entitles the subscriber to receive one common
share of the Company and one-half of one common share purchase warrant. Each
whole Purchase Warrant is exercisable for one common share of the Company at
an exercise price of US$0.75 for a period of 24 months from the date of
closing of the Offering.
Building on the Company's achievements
in 2010, the net proceeds of the Offering will be used by the Company to
complete a National Instrument 43-101 preliminary economic assessment,
including advanced metallurgical test work to optimize the process flow
sheet, for additional exploration and for general working capital
requirements.
The Company intends to close this
offering during the month of January 2011. All securities to be issued in
connection with this Offering will be subject to a statutory six-month hold
period as required by the U.S. authorities from the date of issue. Completion
of the Offering remains subject to approval of the applicable regulatory
authorities, including the TSX Venture Exchange. Finders' fees may be payable
in connection with the Offering.
This press release does not constitute
an offer to sell or a solicitation of an offer to sell any of the securities
in the United States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered or
sold within the United States or to U.S. persons unless registered under the
U.S. Securities Act and applicable state securities laws or an exemption from
such registration is available.
Updated National Instrument 43-101
Report Now Available
The updated NI 43-101 Technical Report
("Report") for the Green Giant project is now available on SEDAR at
www.sedar.com
and on the Company's website at www.energizerresources.com.
This Report outlines in detail the Company's updated mineral resource
estimate, which confirms the Green Giant project as one of the largest known
vanadium deposits in the world.
This Report also includes details of the
drilling carried out by Energizer during the period of May to June 2010 on
the Green Giant project and also an updated metallurgical study conducted by Mintek in South Africa and SGS Lakefield Research in
Ontario, Canada.
About the Green Giant Vanadium Project
The Green Giant vanadium project,
located in Madagascar, is 100% owned by Energizer. The Company has a National
Instrument 43-101 compliant indicated resource estimate of 49.5 million tonnes at an average grade of 0.693% vanadium pentoxide ("V2O5") containing 756.3 million
pounds of V2O5 and an inferred resource of 9.7 million tonnes
at an average grade of 0.632% V2O5 containing 134.5 million pounds of V2O5.
With this resource estimate, the Green Giant deposit currently ranks as the
third largest known vanadium deposit in the world, with 75% of the
21-kilometre (18 mile) stratigraphic trend of
vanadium remaining open for drilling.
About Energizer Resources
Energizer Resources Inc. is a mineral
exploration and development company based in Toronto, Canada. The Company's
common shares are traded on the TSX Venture Exchange under the symbol EGZ, on
the Over-The-Counter Bulletin Board under the symbol ENZR, and on the
Frankfurt Exchange under the symbol YE5.
For more information, please visit our
website at www.energizerresources.com.
Cautionary Statement: The above resource
estimates were calculated in accordance with National Instrument 43-101 as
required by Canadian securities regulatory authorities. For United States
reporting purposes, Industry Guide 7 (under the Securities Exchange Act of
1934), as interpreted by the Staff of the SEC, applies different standards in
order to classify mineralization as a reserve. Among other things, the terms
"measured", "indicated" and "inferred" mineral
resources are required pursuant to National Instrument 43-101, the U.S. Securities
and Exchange Commission does not recognize such terms. Canadian standards
differ significantly from the requirements of the U.S. Securities and
Exchange Commission, and mineral resource information contained herein is not
comparable to similar information regarding mineral reserves disclosed in
accordance with the requirements of the U.S. Securities and Exchange
Commission.
Mineral resources are not mineral
reserves and do not have demonstrated economic viability. This mineral
resource estimate includes inferred resources that are normally considered
too speculative geologically to have economic considerations applied to them
that would enable them to be categorized as mineral reserves. There is also
no certainty that the inferred mineral resource will be converted to the
measured and indicated mineral resource categories through further drilling,
or into a mineral reserve once economic considerations are applied.
U.S. investors should understand that
"inferred" mineral resources have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and legal
feasibility. In addition, investors are cautioned not to assume that any part
or all of the Company's mineral resources constitute or will be converted
into reserves.
Safe Harbour
Statement: The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this press release issued by the Company. This press
release may contain forward-looking statements that may involve a number of
risks and uncertainties. Actual events or results could differ materially
from expectations and projections set out herein.
Forward-looking statements include,
receipt of regulatory approval, statements on the proposed use of proceeds;
completion of financing on terms proposed; the ability to raise additional
funds as required; the development potential and timetable of the Company's
properties and minerals; the current and future price of minerals the Company
explores; the estimated size of mineral deposits on the Company's properties;
the realization of those mineral deposit estimates; the timing and amount of
estimated future exploration, development and production; costs of future
exploration, development and production activities; success of exploration
activities; government regulatory matters; discussion of political and
environmental risks.
Forward-looking statements are based on
the opinions and estimates of management of the Company. Forward-looking
statements are subject to known and unknown risks that may cause actual
results to be materially different from stated opinions and estimates of
management. Some of the Company's more material risks are: availability and
timing of external financing; unexpected events and delays during
exploration; receipt of government and stock exchange approvals; results of
current exploration activities; future price of minerals; political risks in
the locations of the Company's properties; appreciation/depreciation of
foreign currencies relative to the United States Dollar (the Company's
functional currency) and other risks inherent in the mining and exploration
industry.
While Company's management has attempted
to determine the factors that could cause actual results to differ materially
from estimated results contained in forward-looking statements, there may be
other factors that cause results not to be as anticipated. The Company
provides no assurance that such forward-looking statements will prove
accurate or not materially different than projected. Therefore readers of
this and other press releases issued by the Company should not place
unreasonable reliance on stated forward-looking statements.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as such term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contact:
Contacts:
Energizer Resources Inc.
Brent Nykoliation
Vice President, Business Development
416.364.4911 or Toll Free: 800.818.5442
bnykoliation@energizerresources.com
Energizer Resources Inc.
Julie Lee Harrs
President and COO
416.364.4911 or Toll Free: 800.818.5442
www.energizerresources.com
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