MELFORT, SK, April 21, 2014 /CNW/ - On March 6, 2014, Hodgins Auctioneers Inc. ("Hodgins" or the "Corporation") (TSXV: HA) announced that it has entered into a conditional agreement with Majesta Resources Inc. ("Majesta") to acquire a 25% undivided interest in a group of nine contiguous mineral claims with a combined total of 39,125 hectares (98,233 acres) ("Majesta Mineral Claims") located 230 km NW of La Ronge and 445 km north of Prince Albert, Saskatchewan. The two parties have extended the closing date to May 5, 2014. The TSXV has extended its closing date condition to the approval of the transaction and the raising of $350,000 by non-brokered private placement to May 5, 2014.
The Corporation is seeking to close a non-brokered private placement of up to 7,000,000 units at a price $0.05 per unit for gross proceeds of up to $350,000. The parties have amended the flow through terms such that six of seven of every common share issued has flow through attributes. Each unit will be comprised of one common share in the capital of Hodgins and one half of one common share purchase warrant. Each full warrant will entitle the holder to purchase one common share at a price of $0.075 per common share exercisable no later than the date that is one year from the date of issuance of such warrant provided. All of the securities issued under the private placement will be subject to a four month resale restriction and will contain a legend which will detail the resale restriction. There is no minimum subscription under the private placement and Hodgins may close the offering in several tranches, however, the private placement must be concluded by May 5, 2014. The proceeds of the private placement will be used to make the claims acquisition.
In connection with this private placement, Hodgins will pay cash finder's fees equal to 8% of the funds raised to eligible finders who introduce subscribers to the private placement and issue one common share and one finder's fee warrant for every 10 units issued to eligible subscribers. Each finder's fee warrant will be issued to finders on the same terms as the warrants comprising the units.
About Hodgins Auctioneers Inc.
Hodgins Auctioneers Inc. is an auction company conducting business in Western Canada. For further information, please contact Grant Hodgins, CEO, 306.752.2075 or visit www.hodginsauctioneers.com
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the timing and completion of the proposed private placement and related information. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation.
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).
SOURCE: Hodgins Auctioneers Inc.
For further information: Grant Hodgins, CEO, 306.752.2075 or visit www.hodginsauctioneers.com