Feb 24 2011
Expedition Mining Inc. (TSX VENTURE:EXU) has announced that it has arranged the non-brokered private placement of up to 3,500,000 units of the Company at a price of CDN $0.32, and of up to 2,625,000 flow-through units of the Company at a price of CDN $0.40, for aggregate gross proceeds of up to CDN $2,170,000.
Each NFT Unit will comprise of one common share of the Company and one half of a common share purchase warrant (each whole such warrant a "NFT Warrant"). Each NFT Warrant may be exercised by the holder into one common share of the Company at an exercise price of CDN $0.50 for a period of 18 months from closing except that, if after the expiry of all resale restrictions, the closing price of the Company's shares on the TSX Venture Exchange is $0.75 or greater for a period of 10 consecutive trading days, the Company may give notice of an earlier expiry of the NFT Warrants, in which case they will expire 21 days after the giving of such notice.
Each FT Unit will comprise of one flow-through common share of the Company and one half of a common share purchase warrant (each whole such warrant a "FT Warrant"). Each FT Warrant may be exercised by the holder into one common share of the Company at an exercise price of CDN $0.55 for a period of 18 months from closing except that, if after the expiry of all resale restrictions, the closing price of the Company's shares on the TSX Venture Exchange is CDN $0.75 or greater for a period of 10 consecutive trading days, the Company may give notice of an earlier expiry of the FT Warrants, in which case they will expire 21 days after the giving of such notice. The Company will use its reasonable efforts to renounce the flow-through proceeds for the 2011 taxation year.
The Company will pay finder's fees equal to 5% of subscription amounts found, payable in cash or units at the election of the finder, with the number of such finder's units calculated using a price of CDN $0.32 and having the same terms as the NFT Units, plus issue finder's warrants in an amount equal to 5% of NFT plus FT Units subscribed for, with each such finder's warrant to be exercisable into one common share of the Company at a price of CDN $0.80 for 18 months from closing.
Closing of the Offerings is anticipated to occur on or before March 16, 2011. The private placements are subject to TSX Venture Exchange acceptance and required regulatory approvals. All of the securities issued pursuant to this offering will have a hold period expiring four months after the closing date.
The proceeds from the Offerings will be used to continue exploration on Expedition's Yukon and Nevada projects and for general working capital purposes.
Source: Expedition Mining Inc.