Trading Symbol: TSXV: BMC
Shares Outstanding: 124,627,490
HALIFAX, Feb. 18 /CNW/ - Buchans Minerals Corporation (TSXV: BMC) ("Buchans Minerals" or the "Company") is pleased to announce that it completed a private placement offering
("Offering") of a total of 23,293,362 equity units ("Units") at a price of $0.11 per Unit and 2,977,693 flow-though units ("Flow-Though Units") at a price of $0.13 per Flow-Though Unit for aggregate gross proceeds
of $2,949,370. Northern Securities Inc. ("Northern") acted as agent in the Offering.
Each Unit consists of one common share ("Common Share") and one Common
Share purchase warrant (a "Hard Dollar Warrant"), with each Hard Dollar Warrant entitling the holder to acquire one
Common Share at an exercise price of $0.17 for a period of two years
from closing. Each Flow-Through Unit consists of one flow-through
Common Share and one half of one Common Share purchase warrant (each
whole warrant a "Warrant"), with each Warrant entitling the holder to acquire one Common Share
at an exercise price of $0.18 for a period of two years from closing.
Buchans Minerals paid Northern a work fee and a cash commission equal to
8% of the proceeds of the Offering. Buchans Minerals also issued
Northern warrants ("Broker Warrants") to acquire 2,101,684 Units exercisable at $0.11 per Unit for a period
of two years from closing. Each Hard Dollar Warrant issued upon
exercise of the Broker Warrants will be exercisable for one Common
Share for two years from the closing at an exercise price of $0.17 per
All of the securities issued in connection with the Offering are subject
to a hold period of four months and one day from the date of issue.
The net proceeds of the private placement will be used for general
working capital purposes and to advance the Company's exploration and
development projects, including the Lundberg & Engine House base metal
deposits, the Woodstock manganese deposits and the Long Range
exploration property (which includes the Goldquest, Portage, Range and
About Buchans Minerals:
Buchans Minerals is an Atlantic Canada based resource company that is
focused on exploring and developing mineral properties in New Brunswick
and the historic Buchans mining camp in central Newfoundland, Canada.
Forward Looking Statements:
Certain information contained herein may constitute forward-looking
statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, expectations,
opinions, forecasts, projections, guidance or other statements that are
not statements of fact. Although the Company believes the expectations
reflected in such forward-looking statements are reasonable, they can
give no assurance that such expectations will prove to have been
correct. The Company cautions that actual performance will be affected
by a number of factors, many of which are beyond their control, and
that future events and results may vary substantially from what the
Company currently foresees. The Company's forward looking statements
are expressly qualified in their entirety by this cautionary statement.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
SOURCE BUCHANS MINERALS CORP.
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