Post by
kanerfalk on Jul 18, 2011 7:05am
News - PP
July 18, 2011
Pitchstone Arranges Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2011) - Pitchstone Exploration Ltd. (TSX VENTURE:PXP) ("Pitchstone") has arranged a non-brokered private placement of 5,357,000 units at
.14 per unit to raise gross proceeds of approximately $750,000.
The financing will enable Pitchstone to maintain a cash balance by year end of approximately $1.5 million after completing its 2011 uranium exploration programs. Funds raised by this placement will be used for exploration on Pitchstone's Namibian uranium properties and for general corporate purposes. Work planned in Namibia includes additional reverse circulation drilling to test calcrete and leucogranite hosted uranium mineralization on the Dome property in the Erongo region.
Subscribers include Directors and Officers of Pitchstone, plus strategic investors who share management's long term visions for the company. Steve Blower, President and CEO, commented that: "We are pleased to have shareholders that continue to support our exploration efforts in two of the most prolific uranium producing regions of the world. Pitchstone also continues to benefit from a strong group of joint venture partners that share the funding on some of our projects."
Each unit will consist of a common share plus one half of a share purchase warrant. Each whole share purchase warrant will enable the holder to purchase one additional Pitchstone common share for
.25 for a period of eighteen months. A cash finder's fee equal to 7% plus finder's warrants equal to 7% of the shares subscribed for will be paid on a portion of the placement. The placement is subject to regulatory approvals.
Upon completion of the placement, Pitchstone would have 45,208,000 common shares outstanding and approximately $2,650,000 in cash.