Mr. Ivan Bebek reports
CAYDEN RESOURCES RAISES CAD$7.85 MILLION THROUGH A BROKERED PRIVATE PLACEMENT
Cayden Resources Inc. has completed a brokered private placement for gross proceeds of $7.85-million by issuing 3,925,000 units of the company at a price of $2 per unit. Each unit consists of one common share plus one-half of one common share purchase warrant with each whole purchase warrant exercisable into a common share at a price of $3 for a period of 24 months from closing. In the event that the company's common shares trade at a closing price on the TSX Venture Exchange of greater than $5 per share for a period of 20 consecutive trading days at any time after four months after the closing date, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof and in such case the warrants will expire on the 30th day after the date on which such notice is given by the company.
The offering was brokered by a syndicate led by Euro Pacific Canada Inc. and includes Fraser Mackenzie Ltd. The agents received a combined cash commission of $259,800, 60,000 units and 392,500 broker warrants entitling the agents to purchase common shares of company, at a price of $2 per share within 24 months after closing of the offering.
The net proceeds of the financing will be adequate to finance both of the company's Mexico and Nevada drill programs and for general corporate purposes. The company plans 12,000 metres of drilling at its Morelos Sur gold project including a 6,000-metre first phase program at its Las Calles project and 6,000-metre first phase program on the large La Magnetita target pending the successful completion of surface exploration. At its Quartz Mountain program in Nevada, the company plans a 5,000-metre program consisting of RC and core drilling, which will commence shortly.
The offering included insider participation from Ivan Bebek, president and chief executive officer, of 85,000 units, Dan McCoy, chief exploration geologist, of 50,000 units, Steve Cook, director, of 50,000 units, and Peter Rees, chief financial officer, of 5,000 units and pro-group subscriptions of 30,000 units.
We seek Safe Harbor.