7,500,000 financingAugust 21, 2006
Sulliden Arranges for Bought Deal Financings Totalling $7,500,000
MONTREAL, CANADA--(CCNMatthews - Aug. 21, 2006) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sulliden Exploration Inc. (TSX:SUE) ("Sulliden" or "the Company") is pleased to announce that it has arranged two separate equity financings to raise aggregate proceeds of $7,500,000.
Sulliden has entered into an agreement with J. F. Mackie & Company Ltd. of Calgary, Alberta for a private placement on a "bought deal' basis of 6,250,000 units at a price $0.80 per unit to raise aggregate proceeds of $5,000,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share of the Company upon the payment of $1.00 per share for a period of 12 months following the closing date. If the closing price of the common shares of Sulliden on the Toronto Stock Exchange is $1.50 or higher for 15 consecutive trading days, the Company will notify the warrant holders who will have 40 business days to exercise, failing which their warrants will automatically expire.
Sulliden has separately arranged for a second private placement in Europe on a "bought deal" basis of an additional 3,125,000 units on the same terms through Compania International Financiera SA of Geneva, Switzerland, to raise proceeds of an additional $2,500,000.
The Company will pay a cash commission to each of J. F. Mackie and Compania International Financiera of 8% of the proceeds raised by such parties and will issue to each of them brokers' warrants to purchase that number of units equal to 13% of the number units sold by them under the private placements, on the same terms outlined above.
Proceeds from the offerings will be used to finance the Company's exploration activities in Peru and for general working capital purposes. The common shares and warrants forming part of the units will be subject to a 4-month hold period.