Vancouver, B.C., June 23, 2011. Pancontinental Uranium Corporation (TSX-V: PUC) (the “Company”) is pleased to announce the completion of its previously announced non-brokered private placement of 7,776,000 units at a price of $0.26 per unit for gross proceeds of $2,021,760. Each unit is comprised of one common share (a “Common Share”) in the capital of the Company and one half of one Common Share purchase warrant (each whole warrant, a “Warrant”) of the Company.
Each Warrant is exercisable to purchase one Common Share at a price of $0.40 per Common Share for a period of two years following the closing of the private placement provided that if, at any time after the date that is more than four months and one day following the closing of the private placement, the Common Shares trade on a stock exchange at a volume weighted average trading price of $0.60, or greater, per Common Share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
The securities issued pursuant to the private placement are subject to a four-month hold period.
The funds raised will fund Rare Earth Element (REE) and uranium exploration work on the Company’s joint venture properties in Australia and general working capital.
The financing remains subject to final acceptance by the TSX Venture Exchange.
About Pancontinental Uranium Corporation
Pancon is a Canadian-based company focused on uranium and Rare Earth Elements (“REE”) discovery and development. Through a 50:50 joint venture with Crossland Uranium Mines Limited (“Crossland”) of Australia, Pancon has established one of the strongest management teams in the uranium industry. This management and operating team has unparalleled experience from exploration, through development to operations, and includes people who were instrumental in the discovery of two of the largest uranium deposits in the world. Pancon and Crossland hold an impressive uranium exploration portfolio with projects in prolific, mining friendly districts.
Active exploration is ongoing at three Australian projects which include Chilling, Charley Creek, and Kalabity. The Chilling project has the potential to host a mirror image of a portion of the renowned Alligator Rivers Uranium Field containing the large Jabiluka, Ranger and Koongarra deposits. Charley Creek has the potential for large, lower-grade, Rossing-type, granite-hosted uranium deposits and REE deposits in the surface alluvial sands and bedrock. The Kalabity project lies in a district of historic uranium/radium mining that contains a variety of known uranium deposit styles.
Pancon has earned a 50% interest in this significant uranium and REE project portfolio through the joint venture with Crossland through the expenditure of A$8 million. Pancon and Crossland are also pursuing exploration beyond Australia through an international subsidiary company, Crosscontinental Uranium Limited, and immediate plans include formulating an exploration program in Burkina Faso.
ON BEHALF OF THE BOARD OF DIRECTORS
President & CEO
For further information, please contact:
President and CEO
604-986-2020 or 1-866-816-0118
Director of Communications
604-986-2020 or 1-866-816-0118
For additional information, please visit our website at www.PanconU.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Language and Forward Looking Statements
This press release may contain “forward-looking statements”, which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure documents filed from time to time with the Canadian securities authorities. NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES