Critical Elements Lithium Corp V.CRE

JOR.V

[post2006]

Dec 03, 2010 08:38 ET
Jourdan Resources Inc. Announces $1.7 Million Private Placement Financing
MONTREAL, CANADA--(Marketwire - Dec. 3, 2010) - Jourdan Resources Inc. (TSX VENTURE:JOR) ("Jourdan" or the "Company") (please visit the Company's website at www.jourdan.ca)is pleased to announce that it has entered into an agreement withIndustrial Alliance Securities Corporation (the "Agent"), for a privateplacement financing of units ("Units") at a price of
.15 per Unit andflow-through shares ("FT Shares") at a price of
.20 per FT Share foraggregate gross proceeds of up to $1,700,000 (the "Offering").
The Offering is being made by the Agent on a commerciallyreasonable efforts basis and is expected to close later this month. TheOffering is subject to certain conditions including, but not limited to,the receipt of all necessary regulatory approvals. All securities to beissued under the Offering will be subject to four-month statutory holdperiod in Canada.
Each Unit consists of one common share and one-half of onecommon share purchase warrant (a "Warrant"). Each whole Warrant willentitle the holder to acquire a further common share of the Company at aprice of
.20 per share for a period of 18 months following theclosing date.
At the closing of the Offering, the Agent shall receive acommission paid in cash equal to 8.5% of the gross proceeds raised underthe Offering. In addition, the Agent shall receive non transferablewarrants exercisable for a period of eighteen (18) months from the dateof closing to acquire such number of common shares of the Company as isequal to 6% of the aggregate number of Flow-Through Shares and Unitsissued under the Offering.
The net proceeds from the Unit offering will be used forgeneral working capital purposes. The gross proceeds from the FT Shareswill be used for exploration and development of the Company's Quebecproperties. The Corporation's expenditures will qualify as "Canadianexploration expenses" and flow-through mining expenditures (as definedin the Income Tax Act (Canada) which can be renounced to purchasers forthe 2010 taxation year.