FT $ at $1.05 - now lets goTrue North arranges $2.1-million equity financing
True North Gems Inc TGX
Shares issued 18,197,405 Nov 27 close $1.00
Fri 28 Nov 2003 News Release
Mr. Ken Shortt reports
TRUE NORTH GEMS TO RAISE $2.1 MILLION FOR CANADIAN GEMSTONE EXPLORATION
True North Gems has concluded negotiations with Canaccord Capital for the
private placement of up to two million flow-through share units of the
company at the price of $1.05 per flow-through unit. The terms of the
private placement include the provision for a 20-per-cent overallotment.
Each unit consists of one flow-through share and one-half transferable
warrant, each whole warrant entitling the holder to purchase one additional
common share of the company at a price of $1.50 per share for a period of
18 months.
The net proceeds from the private placement will be applied to exploration
of the Regal Ridge emerald project and other Canadian gemstone exploration
programs.
In consideration of obtaining subscriptions for the private placement, the
company's agents will be paid a commission of 8-per-cent cash and
10-per-cent agent's warrants. In addition, the agent will be paid a
corporate finance fee payable in units.
The flow-through shares offered are to be qualified as flow-through shares
under the Income Tax Act (Canada). This private placement is subject to
acceptance by the securities and regulatory authorities.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
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