PP Raising C$25 MillionProbe Mines Announces Closing of Brokered Private Placement Raising C$25 Million
TORONTO, ONTARIO, Apr 21, 2011 (Marketwire via COMTEX News Network) --
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Further to its press releases dated March 28 and April 4, 2011, Probe Mines Limited (TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce the completion of its previously announced brokered private placement for gross proceeds of C$25,002,000, through the sale of 18,520,000 units at a price of C$1.35 per unit (the "Offering"). Each unit consists of one common share and one half of one common share purchase warrant (each whole such warrant, a "Warrant"). BMO Capital Markets ("BMO") acted as sole agent for the Offering.
Each Warrant entitles the holder to purchase one additional common share of the Company at a price of C$1.70 until April 21, 2013. If the volume-weighted average share price of the common shares on the TSX Venture Exchange (the "TSX-V") is greater than C$2.70 per common share for a period of 20 consecutive trading days at any time following the issuance of the Warrants, the Company may accelerate the expiry date of the Warrants by issuing a press release announcing the reduced Warrant term, whereupon the Warrants will expire on the 30th calendar day after the date of such press release.
A cash commission equal to 6% of the gross proceeds of the Offering was paid to BMO in connection with the Offering and compensation warrants were issued to BMO entitling it to purchase up to 1,111,200 common shares of the Company at a price of C$1.35 per common share until April 21, 2013.
The Company intends to use the net proceeds from the Offering to fund the exploration and development of the Borden Lake property, as well as other projects and for general corporate purposes.
All securities issued pursuant to the Offering are subject to a hold period until August 22, 2011.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities 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 within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.