Dr. Richard Sutcliffe reports
URSA MAJOR MINERALS RECEIVES APPROVAL FOR BROKERED PRIVATE PLACEMENT FOR UP TO $2,472,000
Ursa Major Minerals Inc. has received approval from the Toronto Stock Exchange for its previously announced (see news in Stockwatch on Jan. 26, 2011) offering of up to 7.5 million flow-through common shares at a price of 20 cents per FT common share for gross proceeds of $1.5-million, and up to 5.4 million units at a price of 18 cents per unit for gross proceeds of up to $972,000, for total proceeds of $2,472,000. Each unit will consist of one common share of the company and one-half common share purchase warrant. Each warrant will entitle the holder to acquire one common share at a price of 24 cents per share for the first year following the closing date, and 30 cents per share for the second year following the closing date. Loewen, Ondaatje, McCutcheon Ltd. has agreed to act as agent for and on behalf of the company, on a best efforts agency basis with respect to the offering, pursuant to which they will receive an aggregate cash commission of 7 per cent of the gross proceeds raised in the offering, as well as such number of broker warrants as is equal to 7 per cent of the aggregate number of units and FT common shares issued pursuant to the offering. Each broker warrant shall be exercisable to acquire one common share at a price of 19 cents for a period of 24 months from the closing date.
Any securities to be issued pursuant to the offering will be subject to a hold period of four months from the closing date in accordance with the rules and policies of the Toronto Stock Exchange and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws.
The proceeds of the offering will be used for continuing exploration on the company's existing properties and general administrative expenses. Richard Sutcliffe, Ursa Major's president and chief executive officer, stated: "This financing will provide the company with funds to accelerate our current exploration program. The company will drill down plunge from the Shakespeare East deposit where we are currently testing a strong borehole EM conductor down plunge from known mineralization. In addition, we will continue drilling at the nickel offsets, where we have outlined high-grade nickel-copper-platinum group metal targets from drilling in late 2010. We will also test targets for nickel, copper and platinum group metals on our Thunder Bay properties."
Special shareholders meeting
Ursa Major has scheduled a special meeting of shareholders for March 3, 2011, in response to a requisition for a shareholder meeting received from Inspiration Mining Corp. (ISM) dated Oct. 29, 2010. ISM, according to its press release dated Jan. 27, 2011, is a 19.7-per-cent shareholder in Ursa Major (based on the number of issued and outstanding shares of Ursa Major prior to completion of the offering). ISM requisitioned the meeting for the purpose of "the election of a board of directors as proposed by (ISM)."
Ursa Major has been advised that ISM has retained counsel to bring a motion as soon as possible to prevent Ursa Major from proceeding with the private placement. Ursa Major has been advised that the motion will ask the court to make closing of the private placement conditional on Ursa Major obtaining shareholder approval for the private placement at the upcoming special meeting of shareholders. Ursa Major will seek its own counsel to advise with respect to this motion