As expected
Foundation Resources Announces Equity Financings for Proceeds of Up to $3,516,300.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 7, 2010) - Foundation Resources Inc. (TSX VENTURE:FDN) is pleased to announce that it has entered into an agreement with a syndicate of agents led by Canaccord Financial Ltd. and including Fraser Mackenzie Limited (collectively, the "Agents") to sell up to 4,765,000 flow through units (the "FT Units") at a price of
.42 per FT Unit to raise up to $2,001,300, on a commercially reasonable efforts private placement basis, and on the same basis, to sell up to 2,900,000 units ("Units") at a price of
.35 per Unit to raise up to $1,015,000 (the "Brokered Offering"). The Company will also be raising, on a non-brokered basis, up to $500,000 by selling a combination of Units and FT Units on the same terms as the Brokered Offering (together with the Brokered Offering, the "Offering").The FT Units will consist of one flow-through common share of the Company and one-half of one common share purchase warrant. The Units will consist of one common share of the Company and one purchase warrant. Each whole warrant shall be exercisable for one common share of the Company at a price of
.50 per share for a period of 18 months from the closing date of the transaction.
The Agents will receive commissions consisting of cash and agent's warrants from the gross proceeds of the Brokered Offering.
The Offering is expected to close on or around June 3, 2010 and is subject to regulatory approval, including the approval of the TSX Venture Exchange. Proceeds of the Offering will be used to fund exploration on the Company's Coldstream Property located in Ontario and for general working capital purposes.
About Foundation Resources Inc.:
Foundation is a mineral exploration company focused on exploration and development of high potential gold properties in Canada and Mexico. Its Coldstream Property is located in the Western Superior geological province of the Canadian Shield, which is noted for hosting prolific gold deposits in Ontario, Canada. The San Rafael property is located approximately 150km north-west of Durango in the Durango State, Mexico
On behalf of the board,
John E. Hiner, Chief Executive Officer
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
CUSIP: # 350476107
ISIN CA3504761071
Neither the 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.