Mr. Bing Jung reports
COPPER CREEK CLOSES FIRST TRANCH OF PRIVATE PLACEMENT
Copper Creek Gold Corp. has closed the first tranche of a non-brokered private placement financing announced on Oct. 1, 2010, in Stockwatch by the issuance of 3.6 million units for gross proceeds of $660,000, as follows:
- A total of $420,000 was raised through the issuance of 2.4 million non-flow-through units at a price of 17.5 cents per NFT unit, each NFT unit consisting of one non-flow-through common share and one non-transferable share purchase warrant. Each NFT warrant entitles the holder to purchase one additional non-flow-through common share in the capital of the company on or before Oct. 21, 2011, at an exercise price of 20 cents per share.
- A total of $240,000 was raised through the issuance of up to 1.2 million flow-through units at a price of 20 cents per FT unit, each FT unit consisting of one flow-through common share and one non-transferable share purchase warrant. Each FT warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the company on or before Oct. 21, 2011, at an exercise price of 25 cents per share.
Of the foregoing, directors and officers of the company have subscribed for 1.25 million NFT units at 17.5 cents per NFT unit.
In connection with certain subscriptions of the private placement, the company paid a total of $33,300 in cash finders' fees to certain arm's-length parties, representing 8 per cent of the gross proceeds raised through them in the private placement. All securities issued by the company pursuant to the private placement are subject to a hold period of four months and one day, and cannot be resold until Feb. 23, 2011.
Proceeds of the private placement will be used for the exploration of the company's Bonsai group of claims located in the Eskay Creek area of northwestern British Columbia and for general working capital. Proceeds from the sale of FT units will be used to incur expenditures which qualify as Canadian exploration expenses, while proceeds from the sale of NFT units will be used for both exploration expenses and general working capital.
The company also wishes to provide an operational update on its Bonsai property, located six kilometres from the past-producing Eskay Creek mine of Barrick Gold Corp. At this time, all 11 diamond drill holes have been logged, sampled and shipped to ALS Chemex Labs of North Vancouver. The company will report assays from these holes as they become available.
We seek Safe Harbor.