VANCOUVER, March 26, 2012 /CNW/ - Flinders Resources Limited ("Flinders") (TSXV : FDR). Mr. Martin McFarlane, President & CEO, announces that Flinders is proposing to undertake a private placement of up to 8,823,530 million units at a price of $1.70 per unit for gross proceeds of up to $15 million. Each unit consists of one common share and one half common share purchase warrant. Each whole warrant will be exercisable at $2.20 per common share for a period of two years from the date of closing of the private placement. The securities issued under the placement will be subject to a four-month hold period from the date of closing. The closing of the private placement is subject to, among other things, final acceptance from the TSX Venture Exchange.
The net proceeds of the private placement will enable Flinders to substantially advance the Kringel graphite mine in Sweden toward production.
Mr McFarlane states: "Flinders' Kringel graphite mine is one of the most advanced graphite projects globally and being already fully permitted and constructed, will be amongst first to deliver premium high quality large flake graphite to European customers. When completed, this financing will enable Flinders to rapidly move forward with its plans to re-start graphite production at Kringel."
"Importantly, with Kringel at such an advanced stage of development, the cost of re-starting operations will be relatively modest and this $15 million financing is expected to deliver to Flinders most if not all of its restart budget requirements."
A finder's fee will be payable on a portion of the financing.
On behalf of the Board
Martin McFarlane, President and CEO
Certain information set out in this news release may constitute forward-looking information. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.
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 news release.
For further information:
Jim Powell +1 647-478-5806