KIRKLAND LAKE, ON, Nov. 10 /CNW/ - VAULT MINERALS INC. (TSX-V: VMI) ("Vault" or the "Company") announces that it has closed its brokered private placement (the "Offering") with Primary Capital Inc. (the "Agent") and has raised aggregate gross proceeds of $1,363,785. In connection with the Offering, the Company issued: (i) 3,333,450 common shares which qualify as "flow-through" shares pursuant to the Income Tax Act (Canada) (the "FT Shares") at a price of $0.30 per FT Share; and (ii) 1,455,000 units (the "Units") at a price of $0.25 per Unit.
Each Unit consists of one common share and one-half of one share purchase warrant. Each whole warrant (a "Warrant") will entitle the holder thereof to acquire one additional common share of Vault at an exercise price of $0.35 per share for a period of 24 months following the date of issuance thereof; provided however that if, at any time following the date which is six months following the closing of the Offering, the common shares of the Company trade at a price of $0.80 or greater per share for a period of 10 consecutive trading days, the expiry date of the Warrants may be accelerated to the date which is 30 days following the date upon which the Company provides notice to the holders thereof of such accelerated expiry date. Certain insiders of the Company subscribed for 80,000 FT Shares and 600,000 Units, representing 12.76% of the gross proceeds of the Offering.
The Agent received a cash commission equal to 7% of the gross proceeds raised under the Offering, being $83,284.95 and compensation options (the "Agent's Warrants") equal to 7% of the number of FT Shares and Units sold under the Offering, being 287,591 Agent's Warrants. Each Agent's Warrant will be exercisable for one common share of the Company at a price of $0.25 per share for a period of 24 months from closing. Commissions were not paid on subscriptions by insiders.
The FT Shares, Units, Agent's Warrants and their underlying common shares bear a legend restricting their resale until March 11, 2010. The net proceeds will be used to explore the Company's Kirkland Lake gold properties and for general working capital purposes.
Vault Minerals Inc. is a Canadian junior gold exploration company active in the world-renowned Kirkland Lake gold camp of northern Ontario. Before completion of the Offering noted above, the Company's capital consisted of 33,316,093 issued and outstanding common shares which are listed for trading on the TSX Venture Exchange under the symbol 'VMI'. For further information, please contact Joe Horne, President at 902 402 8266 or visit www.vaultminerals.com.
On behalf of the Board of
VAULT MINERALS INC.
signed "Joseph D. Horne"
Joseph D. Horne, President & CEO
This Press Release may contain forward-looking statements that involve inherent risks and uncertainties. Actual events or results could differ materially from the Company's forward-looking statements and expectations, and the Company disclaims any obligation to update these forward-looking statements.
"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 VAULT MINERALS INC.
For further information: For further information: Joe Horne, President at (902) 402-8266 or visit www.vaultminerals.com