/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION THE UNITED STATES/
VANCOUVER, April 29 /CNW/ - Further to its news release of April 12, 2010, Sunward Resources Ltd. (the "Company") has closed a bought deal private placement financing with Cormark Securities Inc. on behalf of a syndicate of underwriters which included Canaccord Financial Ltd. and GMP Securities L.P. The private placement consisted of 20,833,333 special warrants of the Company at a price of $1.20 per special warrant for gross proceeds of $25 million. Each special warrant entitles the holder thereof to receive one common share of the Company on the exercise or deemed exercise of the special warrant.
The Company has agreed to use its reasonable best efforts to obtain a receipt for a final short form prospectus to qualify the distribution of the common shares underlying the special warrants within 45 days following the closing date, failing which the holders of special warrants will be entitled to receive an additional number of common shares equal to 10 per cent of the number of common shares issuable upon the exercise or deemed exercise of the special warrants, resulting in each special warrant being exercisable for 1.1 common shares.
The proceeds from the sale of the special warrants will be used for exploration, drilling, working capital and general corporate purposes related to the company's operations.
The underwriters received a cash commission equal to 6 per cent of the gross proceeds of the offering. As additional compensation the underwriters received broker warrants exercisable to acquire that number of compensation options entitling the brokers to acquire an aggregate of 1,250,000 common shares of the Company at a price of $1.20 per share for a period of 18 months following the closing date.
Neither 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 Sunward Resources Ltd.
For further information: For further information: SUNWARD RESOURCES LTD., Philip O'Neill, Chief Executive Officer, Tel: (403) 226-9885