HALIFAX, Oct. 27, 2011 /CNW/ - Linear Metals Corporation (TSX:LRM)(PINK SHEETS:LMTCF) is pleased to announce that it intends to
increase the previously announced non-brokered private placement
("Private Placement") to up to six million units ("Units") at a price
of $0.25 per Unit for aggregate gross proceeds of up to $1,500,000.
Each Unit will consist of one (1) common share of the Company ("Common
Share") and one half (1/2) of one Common Share purchase warrant
("Warrant"), with each full Warrant entitling the holder to acquire one
common share of the Company at a price of $0.35 per common share for a
period of 24 months from the closing date. The expiry date of the
warrants may be accelerated by the Company if the shares of the Company
trade at $0.50 or greater for twenty consecutive trading days.
Finders will be entitled to a commission in the amount of 7.0% of the
gross proceeds received from the sale of the Units ("Finder's Fee"),
payable 50% in cash and 50% in Units.
Net proceeds of the Private Placement will be used for exploration of
the Company's Kenyan property package and working capital.
The Private Placement is scheduled to close by October 28, 2011 and is
subject to certain conditions including, but not limited to, the
receipt of all necessary approvals including the approval and
acceptance by the Toronto Stock Exchange. All securities to be issued
pursuant to the private placement will be subject to a four month hold
About Linear Metals
Linear Metals Corporation is a TSX listed exploration company focused on
the exploration of its strategic district-scale land package located
along a prolific greenstone belt in Nyanza Province, Kenya. The large
scale of Linear's property package is expected to host multiple
deposits and is expected to provide Linear with an opportunity to
advance the projects for the benefit of all stakeholders. Linear's
exploration program is focused on areas that have the potential to
deliver large-scale success.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address future exploration
drilling, exploitation activities and events or developments that the
Company expects, are forward-looking statements. Although the Company
believes that the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may
differ materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in the
forward-looking statements include exploitation and exploration
successes, continued availability of financing, and general economic,
market or business conditions.
For more information on the Company and the risk factors inherent in its
business, investors should review the Company's Annual Information Form
The TSX Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE Linear Metals Corporation
For further information:
Linear Metals Corporation
Chief Executive Officer