NMX doing small issueI suppose they are making sure they have enough money to complete the drilling on the Lithium property and the Nickle property
Cheers
Nemaska arranges $2-million private placement
NemaskaExploration Inc(C:NMX)
Shares Issued 43,274,706
Last Close5/3/2010
.40
Wednesday May 05 2010 - News Release
Mr.Guy Bourassa reports
NEMASKA EXPLORATION INC.: $2,000,000 PRIVATEPLACEMENT
Nemaska Exploration Inc. has entered into an agreementwith Sandfire Securities Inc. for a private placement of up to 2,222,223common share units at a price of 45 cents per unit for gross proceedsof $1-million and of up to two million flow-through units at a price of50 cents per FT unit for total gross proceeds of $1-million. The grossproceeds from the Units offering shall not be less than the grossproceeds from FT Units offering. The offering is being made by Sandfire,as "Lead Agent", on a reasonable efforts basis and is expected to closeon or about May 26, 2010. The offering is subject to certain conditionsincluding, but not limited to, the receipt of all necessary regulatoryapprovals.
Each Unit will be comprised of one (1) common share of the Company andone (1) Warrant. Each FT Unit will be comprised of one (1) flow-throughcommon share of the Company and one half (1/2) of one share purchasewarrant. Each full warrant is exercisable for two (2) years from theclosing, at an exercise price of
.60 (the "Warrant").
The Warrants shall be subject to an acceleration clause if the Company'sstock price, as listed on the TSX Venture Exchange, closes at or above$1.20 for at least twenty (20) consecutive trading days. In this event,the Warrants must be exercised or will expire thirty (30) calendar daysafter notice is mailed to Warrant holders.
The Company has agreed to grant Sandfire an over-allotment option, whichwill allow Sandfire to offer additional Units for additional aggregategross proceeds of approximately $500,000 and FT Units for additionalaggregate gross proceeds of approximately $500,000, if exercised bySandfire prior to the closing of the offering.
The net proceeds from the Units offering will be used for generalworking capital purposes. The gross proceeds from the FT Units offeringwill be used for exploration and development of the Company's Quebecproperties. The Company's expenditures will qualify as "Canadianexploration expenses" (CEE) under the Income Tax Act (Canada) and willbe renounced to investors for the 2010 taxation year.
The Company has agreed to pay Sandfire a cash commission equal to 8 % ofgross proceeds of the Offering and issue Compensation Warrants equal to9 % of the FT Units and of the Units, exercisable for two (2) yearsfollowing Closing at par with the Offering Price.
? 2010 Canjex Publishing Ltd.