/NOT FOR DISSEMINATION IN THE UNITED STATES OR VIA U.S. NEWSWIRE
CALGARY, Jan. 31 /CNW/ - International Frontier Resources Ltd.
(TSX-V-IFR) (the "Company") is pleased to announce a bought-deal private
placement with Canaccord Capital Corporation ("Canaccord" or the
"Underwriter") of 6,400,000 units (the "Units") at a price of $1.25 per Unit
and 2,000,000 flow-through shares ("Flow-Through Shares") at a price of $1.50
per Flow-Through Share to raise a total of up to $11,000,000 (the "Offering").
A Unit will consist of one common share and one-half of one transferable
common share purchase warrant (a "Warrant"). Each whole warrant will entitle
the holder to subscribe for one additional common share (a "Warrant Share") at
a price of $1.60 for a period of one year from the date of closing.
As consideration for acting as Underwriter, Canaccord will be paid a
commission of 8% of the total proceeds raised in the Offering upon closing
payable in cash. In addition, the Underwriter will receive underwriter's
warrants ("Underwriter's Warrants") equal to 7% of the securities issued
pursuant to the Offering. Each Underwriter's Warrant will be exercisable to
acquire one common share for a period of twelve months from the closing at a
price of $1.60 per share. The Company shall also pay Canaccord a corporate
finance fee payable in units.
The Company has also granted the Underwriter an over allotment option to
purchase additional Units to raise additional gross proceeds of up to
$5,000,000 (4,000,000 Units) and Flow-Through Shares to raise additional gross
proceeds of up to $1,500,000 (1,000,000 Flow-Through Shares) exercisable
forty-eight hours prior to closing.
The funds raised from the issuance of the Flow-Through Shares shall be
used for general exploration expenditures which will constitute Canadian
Exploration Expenditures ("CEE") on the Company's prospects located in the
Central Mackenzie Valley and Colville Hills areas, Northwest Territories.
Funds raised from the issuance of Units will be used for exploration on the
Company's Laurel Valley (Quad 14), Lytham (Quads 41/42) and Ridgewood (Block
12/17b) prospects in the North Sea, for general working capital, and to expand
operations in the North Sea.
Completion of the placement is subject to the approval of the TSX Venture
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this news
release. Statements in this press release, other than purely historical
information, including statements relating to the Company's future plans and
objectives or expected results, may include forward-looking statements.
Forward-looking statements are based on numerous assumptions and are subject
to all of the risks and uncertainties inherent in resource exploration and
development. As a result, actual results may vary materially from those
described in the forward-looking statements.
This news release does not constitute an offer to sell or a solicitation
of an offer to sell any securities in the United States. The securities have
not been and will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state securities laws and
may not be offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available.
NOT FOR DISSEMINATION IN THE UNITED STATES OR VIA U.S. NEWSWIRE SERVICES.
For further information:
For further information: visit www.internationalfrontier.com or contact;
Pat Boswell, President & CEO, (403) 215-2781 or Mark Powell, VP Exploration,