Blowing Off 6 Cent Private PlacementLast summer WAR did a big private placement to finance the now failed deal.
War Eagle Mining Company Inc. has closed the second tranche of its non-brokered private placement previously announced in Stockwatch on June 17, 2010. In connection with the second tranche, the company issued 4,008,334 units at a price of six cents per unit for gross proceeds of $240,500. The company has raised total cumulative gross proceeds of $815,000 and has issued 13,585,002 common shares in connection with this private placement.
The mandatory news release for the second tranche was this:
War Eagle 4,008,334-share private placement
2010-07-20 17:42 PT - Private Placement
Shares issued 53,128,059
WAR Close 2010-07-16 C$ 0.055
The TSX Venture Exchange has accepted for filing documentation with respect to the second tranche of a non-brokered private placement for War Eagle Mining Company Inc. announced June 17, 2010:
Number of shares: 4,008,334 shares
Purchase price: six cents per share
Warrants: 2,004,167 share purchase warrants to purchase 2,004,167 shares
Warrant exercise price: 15 cents for an 18-month period
The warrants are subject to an acceleration clause if the common shares of the issuer are traded on the exchange at a price of 30 cents for 20 consecutive trading days.
Hidden placees: four
Pro groups: Robert Sali 500,000; Rob Blanchard 150,000; David Lyall one million; David Horton 150,000; James Gellman 400,000; Peter Brown one million
Finders' fee: $12,908 and 225,133 finder's warrants payable to Primary Ventures Corp.; $600 payable to Jennifer Upsdell; $4,140 and 69,000 finder's warrants payable to Haywood Securities Inc.; $1,800 and 30,000 finder's warrants payable to Dundee Securities Corp.; $1,440 and 24,000 finder's warrants payable to GMP Securities Corp.
These shares became free trading after 120 days - that was during the long trading suspension. So now those millions of six cent shares are being blown off before the Special Meeting and roll back motion