Monroe Minerals closes $2.04-millionMonroe Minerals closes $2.04-million private placement
2007-11-09 10:37 ET - News Release
Shares issued 80,232,194
MMX Close 2007-11-08 C$ 0.075
Mr. Derek Moran reports
MONROE MINERALS CLOSES FIRST TRANCHE OF $2.5 MILLION FINANCING
Monroe Minerals Inc. has completed $2.04-million of the non-brokered private placement announced in Stockwatch on Oct. 24, 2007. Monroe has issued 16,016,665 units at a purchase price of six cents per unit for a total of $961,000 and 14,348,331 flow-through units at a purchase price of 7.5 cents per flow-through unit for a total of $1.08-million. Monroe has received expressions of interest exceeding the remainder of the original proposed $2.5-million financing and, accordingly, is increasing the total offering to $2.95-million, comprising $1.3-million units and $1.65-million flow-through units, subject to the receipt of necessary regulatory approval. A second closing is scheduled for mid-November.
MineralFields Group purchased 1,666,666 units and 13,333,332 flow-through units.
"This private placement allows Monroe to advance its status as a junior uranium explorer and to reorganize its diamond resource holdings," said Derek Moran, president and chief executive officer of Monroe. "We are also pleased to commence a relationship with MineralFields Group, with whom we look forward to working as we develop our uranium holdings in Canada."
Each unit consists of one common share in the share capital of Monroe and one common share purchase warrant. Each flow-through unit consists of one flow-through common share and one warrant. Each unit warrant will be exercisable into one common share at a price of 10 cents per common share for 12 months from the date of issuance and 12 cents per common share for the following 12 months, subject to earlier expiry in certain circumstances. Each flow-through warrant will be exercisable into one common share at a price of 12 cents per common share for 12 months from the date of issuance and 15 cents per common share for the following 12 months, subject to earlier expiry in certain circumstances. The issued securities are restricted from resale until March 8, 2008.
Finder's fees in the amount of $84,000 and non-transferable finder's options to purchase 2,084,999 finders units at a purchase price of 7.5 cents per finders unit on or before Nov. 8, 2008, were paid to arm's-length finders in connection with the offering. Each finder's unit will consist of one common share and one common share purchase warrant exercisable into one common share at a price of 12 cents for 12 months from the date of grant of the finder's option and at a price of 15 cents for the subsequent 12 months thereafter, subject to earlier expiry in certain circumstances.
Monroe will use the proceeds of the offering to work towards the assembly of a portfolio of uranium properties and exploration thereon, for the exploration and development of its diamond properties and for general working capital purposes. With the increase in the size of the offering, included in the amount allocated for general working capital will be partial repayment of the current portion of long-term debt.
Monroe has also granted options to buy 2.635 million common shares at an exercise price of 10 cents per share to seven directors, employees and consultants (closing price on Nov. 7, 2007, was 7.5 cents per share). The expiry date is Nov. 5, 2012, and one-quarter of the options will vest annually. Mr. Moran commented, "The directors have expressed their confidence in the future of the company by adding a requirement that Monroe's shares trade over 12 cents per share before these options can be exercised. That is a premium of 100 per cent over today's unit financing and 20 per cent over the financing completed in April, 2007. Monroe now has 10.86 million options outstanding under its option plan, at an average exercise price of 15 cents per share."