WINDSOR, NS, Jan. 24 /CNW/ - Buchans Minerals Corporation (TSX-V: BMC)
is pleased to announce that it has arranged a private placement with
Northern Securities Inc. for gross proceeds of up to $3.0 million with
a bought deal commitment from Northern Financial Corporation for $1.5
million of Units, subject to certain conditions. The private placement
is subject to Northern Securities completing due diligence and other
customary closing conditions. The offering will consist of $1,500,000
in Units and $1,500,000 in Flow-Through Units, at a price of $0.11 per
Unit and $0.13 per Flow-Through Unit.
Each Unit will consist of one Common Share and one common share purchase
warrant (a "Hard Dollar Warrant"), with each Hard Dollar Warrant
entitling the holder to acquire one Common Share at an exercise price
of $0.17 for a period of two years.
Each Flow-Through Unit will consist of one Common Share and a half
common share purchase warrant (each whole warrant a "Warrant"), with
each Warrant entitling the holder to acquire one Common Share at an
exercise price of $0.18 for a period of two years. The offering remains
subject to the approval of the TSX Venture Exchange. All securities
issued pursuant to the private placement will be subject to a
four-month hold period. The funds raised from the offering will be used
to finance exploration on Buchans Minerals flagship Lundberg & Engine
House project and for general working capital purposes.
About Buchans Minerals:
Buchans Minerals is an Atlantic Canada based resource company focused on
exploring and developing base metal and gold properties in the region,
including its flagship project covering the historic base metal Buchans
mining camp in central Newfoundland.
Forward Looking Statements:
Certain information contained herein may constitute forward-looking
statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, expectations,
opinions, forecasts, projections, guidance or other statements that are
not statements of fact. Although Buchans Minerals (the Company)
believes the expectations reflected in such forward-looking statements
are reasonable, they can give no assurance that such expectations will
prove to have been correct. The Company cautions that actual
performance will be affected by a number of factors, many of which are
beyond its control, and that future events and results may vary
substantially from what the Company currently foresees. The Company's
forward-looking statements are expressly qualified in their entirety by
this cautionary statement.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
SOURCE BUCHANS MINERALS CORP.
For further information: