ARMSTRONG, BC, April 21 /CNW/ - GWR Resources Inc. (TSX Venture: GWQ) has negotiated a commercially reasonable efforts private placement with Canaccord Capital Corp. of 4,166,667 units at a price of 12 cents per unit and 8,333,333 flow-through units at a price of 12 cents per flow-through unit for total gross proceeds of up to $1.5 million.
Each unit will consist of one common share and one non-transferable common share purchase warrant. Each unit warrant will entitle the holder to purchase one additional common share for two years from the date of closing at a price of 16 cents in the first year and, thereafter, at a price of 25 cents in the second year. Each flow-through unit will consist of one flow-through common share and one non-transferable common share purchase warrant. Each flow-through unit warrant will entitle the holder to purchase one additional common share for eighteen months from the date of closing at a price of 16 cents in the first year and, thereafter, at a price of 25 cents for the following six months.
The Company has also granted the agent an overallotment option to solicit any combination of units and flow-through units to raise additional gross proceeds of up to $150,000, exercisable 48 hours prior to closing.
The funds raised from the issuance of the flow-through units shall be used for ongoing exploration on the Company's Lac La Hache property located in British Columbia. Funds raised from the issuance of units will be for general working capital.
Closing of the private placement is anticipated to occur on or before May 7, 2010, and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The securities issued will be subject to a standard four-month hold period.
About GWR Resources Inc.
GWR RESOURCES INC. is an active mineral exploration company, currently exploring multiple zones containing commercial grades of copper and gold within its large Lac La Hache copper-gold porphyry project. GWR's project is in the prolific Quesnel Trough area of British Columbia, between producing mines at Imperial Metals' Mt. Polley Copper-Gold Mine and New Gold Inc.'s New Afton Copper-Gold project (Teck-Cominco's legendary Afton mine). The Lac La Hache project is well-served by rail, road and power infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: For further information: Responsible Officer: Irvin Eisler, President, Company Telephone Number: (250) 546-8048