Energizer
Resources Inc. (TSX-V:EGZ - News)(OTC.BB:ENZR - News)(Frankfurt:YE5 - News) ("Energizer" or
the "Company") announces the closing of additional funds of its
previously announced non-brokered private placement (the
"Offering"). The current financial closing raised a further U.S.$986,500 which is comprised of 2,192,222 units at
U.S.$0.45 per unit.
To
date a total of U.S.$12,402,745 has been raised comprised
of 27,561,656 units. Each unit includes one common share of the Company and
one-half of one common share purchase warrant. Each whole purchase warrant
entitles the holder to purchase one common share of the Company at an
exercise price of U.S.$0.75 for a period of
twenty-four months from the date of issue.
In
connection with the closings to date of the Offering, the Company is required
to pay finders' fees consisting of a cash fee of 6% to certain eligible
finders totaling U.S.$608,940, and compensation
warrants equal to 6% of the eligible units sold totaling 1,353,199
compensating warrants. Each full compensation warrant entitles the holder to
acquire one unit of the Company at U.S.$0.45 per
unit for a period of twenty-four months from the date of issue.
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 and will also be subject to a four-month hold period in Canada
from the date of issue. Completion of the Offering remains subject to
approval of the applicable regulatory authorities, including the TSX Venture
Exchange.
Use
of Funds
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.
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
Toll Free: 800.818.5442 or 416.364.4911
bnykoliation@energizerresources.com
Energizer Resources Inc.
Julie Lee Harrs
President and COO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com
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