Hathor makes offer for Roughrider Uranium (March 27, 2006)

Vancouver — In a move to become one of the larger landholders in the Athabasca basin, Hathor Exploration (HAT-V, HTHXF-O) is pitching to acquire all the shares of private company Roughrider Uranium.

Hathor, with commitments already in hand from Roughrider shareholders representing over 65% of its issued shares, will offer half a share plus one-eighth of a warrant for each Roughrider share.

With Roughrider’s 30.78 million shares outstanding, Hathor will issue 15.39 million shares plus 3.85 million warrants exercisable at 55 apiece for two years.

Roughrider shareholders will also receive a 2% net smelter return royalty from each property currently held in its portfolio.

Hathor is also looking to close a $3.1-million private placement, a condition of the takeover, consisting of 2.5 million flow-through shares at 45 each and 5 million non-flow-through units at 40 apiece.

Roughrider has almost 4,300 sq. km of mineral claims in the basin and has spent more than $2 million on them over the past couple of years. It has joint ventures in place with Northern Continental Resources (NCR-V, NCLRF-O) on its Russell Lake project and Triex Minerals (TXM-V, TRXMF-O) on the Old Fort Bay and Wollaston NE projects.

Upon resumption of trading on March 16, shares of Hathor soared over 160%, gaining 71 to close at $1.15 on volume of over 11.6 million.