TORONTO, ONTARIO--(Marketwired - July 4, 2014) -
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Mega Uranium Ltd. ("Mega"), a company controlled by an insider of the Company, acquired 3,571,428 Units in the private placement. As a result of the participation in the private placement by Mega, the private placement is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101") and TSX Venture Exchange policy 5.9 ("Policy 5.9"). The transaction was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 and Policy 5.9 however, as neither the fair market value of the securities issued to Mega nor the cash consideration paid for such securities exceeded 25% of the Company's market capitalization. The participation of Mega in the private placement and the extent of such participation were not finalized until shortly prior to the completion of the placement. Accordingly, it was not possible to publicly disclose details of the nature and extent of related party participation in the private placement at least 21 days prior to the completion date.
Net proceeds from the private placement will be used for property concession fees and for working capital and general corporate purposes. The Company is continuing to market the balance of the C$1,000,000 placement.
The securities referred to in this press release 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 in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.
About Macusani Yellowcake Inc.
Macusani Yellowcake Inc. is a Canadian uranium exploration and development company focused on the exploration of its properties on the Macusani Plateau in southeastern Peru. The company owns a 99.5% interest in concessions that cover over 90,000 hectares (900 km2) and are situated near significant infrastructure. Macusani is listed on the TSX Venture Exchange under the symbol 'YEL' and the Frankfurt Exchange under the symbol 'QG1'. The company has 167,660,754 shares outstanding. For more information please visit www.macyel.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.
FOR FURTHER INFORMATION PLEASE CONTACT: Macusani Yellowcake Inc. Laurence Stefan President & CEO 416-628-9600 firstname.lastname@example.org Website: www.macyel.com Facebook: www.macyel.com/facebook/ Twitter: www.twitter.com/macusani/ Source: Macusani Yellowcake Inc.