Firesteel arranges $1.2-million financing
Firesteel arranges $1.2-million financing
2007-05-10 21:05 ET - News Release
Mr. Donald Barker reports
Firesteel Resources Inc. will be undertaking a brokered and non-brokered private placement to raise up to $1.2-million of new equity. The private placement will be units of flow-through common shares, non-flow-through common shares and common share purchase warrants to investors in Alberta and British Columbia, in accordance with specific exemptions whereby Firesteel will not be required to file a prospectus in these jurisdictions. Closing of the private placement of units is scheduled for May 30, 2007, subject to approval by the TSX Venture Exchange and the regulatory authorities concerned.
Details of the unit private placement are that a total are that a maximum of 1,200 units will be sold at $1,000 per unit. Each unit will be made up of 1,000 common shares, 4,000 common shares with flow-through tax benefits attached, and 5,000 warrants allowing the holder to purchase 5,000 common shares at a price of 30 cents per common share, exercisable within a 12-month period following the closing date of the private placement. The warrants will be non-transferrable. The price per share within the private placement works out to 20 cents per common share. The estimated gross proceeds of the private placement will be a maximum of $1.2-million. In the event that all of the maximum number of warrants are exercised, Firesteel would receive an additional $1.8-million. It is anticipated that one or more current insiders of Firesteel may subscribe for units under the private placement. The corporation is relying upon exemptions of the TSX Venture Exchange for related-party transactions