Sep 05, 2001
The Company announces that it has engaged Canaccord Capital Corporation of Vancouver, British Columbia (the "Agent")...
The Company announces that it has engaged Canaccord Capital Corporation of Vancouver, British Columbia (the "Agent"), to assist in carrying out a public offering of up to 1,500,000 units at a price of $0.35 per unit for total proceeds of $525,000 by way of short form offering document. Each unit will consist of one common share and one share purchase warrant. Every two warrants will entitle the holder to purchase one additional common share of the Company at any time for fifteen months from the closing date at a price of $0.45 per share. The warrants will be listed for trading on the CDNX if satisfactory distribution is achieved.
This offering replaces the short form offering announced June 9, 2001. As previously announced, that offering failed to close due to the Company subsequently being required to amend and restate the schedules to its last six quarterly financial statements. All schedules have been refiled, as previously announced on August 28, 2001.
The Company intends to use the net proceeds for its general working capital purposes, including to settle outstanding accounts payable and loans, and toward option payments on its tantalum properties located in Ontario and Quebec.
The Agent will be entitled to a commission equal to 10% of the gross proceeds raised, payable at the option of the Agent, either in cash or by the issuance of common shares of the Company at a deemed price of $0.35 per share, or by a combination of cash and shares. The Agent will also receive an administration fee of $7,500 plus GST, and non-transferable share purchase warrants in an amount equal to 10% of the number of units that may be sold, each warrant entitling the holder to acquire one common share of the Company for fifteen months from the closing date at a price of $0.45 per share. The public offering and the short form offering document being filed therewith is subject to approval of the Canadian Venture Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS "D. Neil Briggs" D. Neil Briggs, Director