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Message: Solomon Resources boosts financing to $750,000

Solomon Resources boosts financing to $750,000

posted on Mar 31, 2010 06:22PM

Solomon Resources boosts financing to $750,000

2010-03-31 15:06 ET - News Release

Mr. Randy Rogers reports


Solomon Resources Ltd. has increased the size of its unit private placement announced in Stockwatch on Jan. 27, 2010, to three million units (previously two million) at 25 cents per unit for proceeds of $750,000 (previously $500,000).

It also plans to issue 4,464,286 flow-through units at 28 cents per unit for proceeds of $1.25-million.

Each unit will consist of one common share and one transferable share purchase warrant to purchase a further (non-flow-through) common share for 40 cents, for a period of two years. The expiry date of the warrants is subject to acceleration if the average closing price of the common shares equals or exceeds 50 cents for 20 consecutive days after the expiry of the four-month restricted resale period.

Finders' fees of 8 per cent (previously 7 per cent) will be paid on funds raised from investors introduced by finders. Solomon now proposes to also issue warrants to eligible finders to purchase that number of (non-flow-through) units equal to 8 per cent of the number of units from investors introduced by the finders. The finder warrants will be exercisable for a period of two years, at 28 cents per unit (25 cents per unit for the non-flow-through placement) in the first year and for 30 cents per unit in the second year.

The financing is subject to regulatory approval. The proceeds of this placement will be used to finance the exploration and development of Solomon's properties, in British Columbia and the Yukon, general corporate overheads, and its continuing efforts to locate more advanced exploration and development projects.

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