Feb 19 2011
Buchans Minerals Corporation (TSXV: BMC) has announced that it completed a private placement offering of a total of 23,293,362 equity units at a price of $0.11 per Unit and 2,977,693 flow-though units at a price of $0.13 per Flow-Though Unit for aggregate gross proceeds of $2,949,370. Northern Securities Inc. acted as agent in the Offering.
Each Unit consists of one common share ("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 from closing. Each Flow-Through Unit consists of one flow-through Common Share and one half of one 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 from closing.
Buchans Minerals paid Northern a work fee and a cash commission equal to 8% of the proceeds of the Offering. Buchans Minerals also issued Northern warrants ("Broker Warrants") to acquire 2,101,684 Units exercisable at $0.11 per Unit for a period of two years from closing. Each Hard Dollar Warrant issued upon exercise of the Broker Warrants will be exercisable for one Common Share for two years from the closing at an exercise price of $0.17 per Common Share.
All of the securities issued in connection with the Offering are subject to a hold period of four months and one day from the date of issue.
The net proceeds of the private placement will be used for general working capital purposes and to advance the Company's exploration and development projects, including the Lundberg & Engine House base metal deposits, the Woodstock manganese deposits and the Long Range exploration property (which includes the Goldquest, Portage, Range and String prospects).
Source: Buchans Minerals Corporation