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Monday, April 17, 2006

Strathmore Minerals (STHJF) Canadian Press Release

hat tip to Pat on this one

Strathmore Minerals (STM.V, STHJF) issued something that is apparently not for distribution in the USA (which is the opposite of this). So I'll refrain from distributing it here and just point to it up there in Canada.

Apparently up there in Canada they priced their "flow-through" common share based financing at C$3.30 per share to raise C$6.1 million and their regular common share based financing at C$2.55 to raise C$3.5 million (which includes half a warrant priced at C$3.25 and expires in 18 months). There's some sort of oversubscription for up to another C$574K on the regular common share based financing. The financing was led by National Bank Financial Inc. and including Raymond James Ltd. and Canaccord Adams. The offering closes April 27, 2006.

The money will fund the Athabasca Basic development work and permitting on the US properties as well as for "general corporate purposes" (which could possibly mean a new gumball machine in the lobby).

Ok so that is, what, 4.2 million shares? (6.1/3.3) + 1.5*(3.5/2.55) + 1.5*(.574/2.55)

In my estimate of the value of Strathmore, I assumed a lot of dilution (70 million shares vs the 49.2 million outstanding at the end of Q1 2006 plus another 17.4 million options and warrants). So maybe it's time to bump that totally diluted share count up to say 100 million shares.

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