Cream Minerals boosts offering to $1.63-millionCream Minerals boosts offering to $1.63-million
2010-03-23 15:47 ET - News Release
Mr. Frank Lang reports
CREAM MINERALS ANNOUNCES PRIVATE PLACEMENT FINANCING
Cream Minerals Ltd. has received approval from the TSX Venture Exchange for an oversubscription of the previously announced non-brokered private placement. The amount of the previously announced non-brokered private placement was $1.4-million (see Stockwatch news releases dated Jan. 25, 2010, and Feb. 9, 2010). The amount of the oversubscription approved is $235,000 for a total of $1,635,000. The company will close the non-brokered private placement on March 25, 2010, and issue a news release thereafter announcing the final receipts.
The non-flow-through unit financing consists of one non-flow-through unit at a price of seven cents per unit. Each unit comprises one common share in the capital of Cream and one non-transferable share purchase warrant. Each warrant entitles the holder to purchase one additional common share of Cream, for a period of 24 months at the exercise price of 10 cents per warrant share, for a period of 12 months from the date of issue of the warrant and at a price of 15 cents per share for the remaining 12-month period.
Compensation may be paid to certain eligible arm's-length parties where such finders arrange for subscribers to the private placements, and may comprise cash and/or units of Cream. The maximum number of finders' units that may be issued will be a number equal to 10 per cent of the number of non-flow-through units sold by such finders. Each finder's unit will consist of one common share and one non-transferable share purchase warrant. Each finder's unit warrant will entitle the holder, on exercise, to purchase one additional common share of Cream for a period of 24 months following the date of issue of the finder's unit at an exercise price of 10 cents per finder's unit warrant share, for a period of 12 months from the date of issue of the unit warrant and at a price of 15 cents per finder's unit warrant share for the remaining 12-month period.
If Cream shares trade at or above 30 cents per share for 10 consecutive trading days, it may, at its discretion, accelerate the expiration of the warrants and finder's unit warrants by providing notice in writing to the holders of such securities, whereby the warrants will expire within 30 days from the date of such written notice.
The net proceeds from the sale of the non-flow-through units shall be used for the further exploration and development of the company's projects, in Mexico and Canada, and for working capital.
We seek Safe Harbor.