MOUNTAIN LAKE INCREASES PRIVATE PLACEMENT FINANCING
Mountain Lake Resources Inc. has amended the terms of the non-brokered private placement announced June 21, 2010, have been amended. Under the amended terms the company is arranging the placement of 4.3 million units at 50 cents per unit to raise $2.15-million in gross proceeds. Each unit will consist of one common share and one-half of a non-transferable share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the company at a price of 75 cents per share for a period of two years from the closing date.
Mountain Lake will have the right to give notice to the warrantholders to accelerate an earlier conversion of the warrants, if the company's common shares, as traded on the TSX Venture Exchange, close above $1.25 per share for at least 10 consecutive trading days. In that event, the warrants will expire 30 days after the company has given notice of the accelerated conversion to the warrantholders.
Completion of this financing is subject to the delivery of definitive subscription agreements and TSX Venture Exchange's acceptance. All of the securities issued pursuant to this offering will have a hold period expiring four months after the closing date.
The net proceeds of this financing will be used to finance the company's exploration and development work on its projects in Newfoundland, and for general working capital purposes.
They are going to drill a lot of ground. I like the acceleration clause-could see the trigger price very soon. The lab is going to have to hire more people to keep up with all the drill cores that will have to be run. Need some pictures of the next round of cores especially if there's visible gold!
Cheers,
JR.