Energizer
Resources Inc. (TSX-V:EGZ - News)(OTC.BB:ENZR - News)(Frankfurt:YE5 - News) ("Energizer" or
the "Company") announces that it has completed its previously
announced non-brokered private placement (the "Offering"). The
final tranche raised an additional U.S.$1,518,750
and was comprised of 3,375,000 units at U.S.$0.45 per unit.
A
gross aggregate of U.S.$13,921,495 was raised with
30,936,656 units being issued in the non-brokered private placement. Each
unit included 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.
The
following is a list of the investors who participated in the Offering:
-- U.S.$5,495,000
was subscribed through MacDougall, MacDougall & MacTier
Inc., which acted as
a non-brokered agent.
-- KS Centoco Ltd., a private manufacturing company based in
Ontario,
subscribed
U.S.$2,000,000.
-- Canadian
institutional investors subscribed U.S.$1,950,000.
-- European
and UK merchant banking firms, Asian investors and other
private investors
subscribed U.S.$4,476,495.
In
connection with the Offering, the Company paid finders' fees consisting of a
cash fee of 6% to certain eligible finders totaling U.S.$704,115,
and compensation warrants equal to 6% of the eligible units sold totaling
1,564,700 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 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
800.818.5442 or 416.364.4911
bnykoliation@energizerresources.com
Energizer Resources Inc.
Julie Lee Harrs
President and COO
800.818.5442 or 416.364.4911
www.energizerresources.com
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