This should make things interesting...
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Foundation closes $2.17-million private placement
2010-06-04 08:51 ET - News Release
Mr. Paul Chung reports
FOUNDATION RESOURCES CLOSES BROKERED EQUITY FINANCING FOR $2.2 MILLION
Foundation Resources Inc. has closed its previously announced brokered equity financing. The company closed a brokered private placement through a syndicate of agents led by Canaccord Genuity Corp. and including Fraser Mackenzie Ltd. to sell 4,765,000 flow-through units at a price of 42 cents per flow-through unit and 510,000 non-flow-through units at a price of 35 cents per unit for combined gross proceeds of $2,179,800.
The flow-through units consist of one flow-through common share of the company and one-half of one common share purchase warrant. The non-flow-through units consist of one common share of the company and one purchase warrant. Each whole warrant is exercisable for one common share of the company at a price of 50 cents per share for a period of 18 months.
The agents received a cash fee equal to 7 per cent of the gross proceeds from the brokered private placement and broker warrants entitling the agents to subscribe for 369,250 units. Each broker warrant is exercisable for one unit, for 18 months from closing, at an exercise price of 35 cents per unit. The agent also received a corporate finance fee of $25,000, payable through the issuance of 71,249 units.
All securities issued pursuant to the financing will be subject to a four-month hold period expiring on Oct. 5, 2010.
The funds raised from the issuance of the flow-though units will be used for expenditures which will qualify as Canadian exploration expenses and flow-through mining expenditures (as defined in the Income Tax Act), and will be renounced in favour of purchasers for 2010. Funds raised from the issuance of the non-flow-through units will be used to develop the company's assets and for general working capital purposes.
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Foundation Resources closes $557,910 financing
2010-06-08 20:35 ET - News Release
Mr. Paul Chung reports
FOUNDATION RESOURCES CLOSES $558,000 PRIVATE PLACEMENT
Foundation Resources Inc. closed, on June 7, 2010, its non-brokered private placement previously announced in Stockwatch on May 7, 2010, which has resulted in gross proceeds to the company of $557,910.
The offering consisted of 859,190 flow-through (FT) units at a price of 42 cents per FT unit, of which 476,190 FT units were subscribed for by the MineralFields Group, and 563,000 non-flow-through (NFT) units at a price of 35 cents per unit.
The FT units consisted of one flow-through common share of the company and one-half of one common share purchase warrant. The NFT units consisted of one non-flow-through common share of the company and one purchase warrant. Each whole warrant is exercisable for one common share of the company at a price of 50 cents per share until Dec. 7, 2011.
For arranging the participation of MineralFields Group in the financing, Limited Market Dealer Inc. was paid a cash commission of $14,000, in relation to the portion of the offering subscribed for by companies affiliated with MineralFields, being 7 per cent of the gross proceeds of such subscription, and is receiving options entitling it to purchase 33,333 units of the company, representing 7 per cent of the FT units placed. Each unit issuable to Limited Market Dealer is exercisable for a period of 18 months at a price of 35 cents per unit, comprising one non-flow-through common share of the company and one-half of a warrant. Each whole warrant will be exercisable on the same terms as the warrants issued to subscribers of the offering.
Finders' fees of $22,726 in cash and 40,950 finders' warrants (on the same terms as issued to subscribers of the offering) were also payable in respect of portion of the offering not subscribed for by MineralFields.
All securities issued pursuant to the offering are subject to a four-month hold period expiring on Oct. 8, 2010.
The funds raised will be used to further exploration work on the company's Coldstream gold project in Ontario.
