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SOLOMON CLOSES FIRST TRANCHE
Apr 26, 2010 05:19PM
Solomon Resources closes first tranche for $717,750
2010-04-26 10:03 ET - News Release
Mr. Randy Rogers reports
SOLOMON CLOSES FIRST TRANCHE OF UNIT AND `FLOW-THROUGH' UNIT PRIVATE PLACEMENT
Solomon Resources Ltd. has closed the first tranche of its private placement by issuing 479,000 units at 25 cents per unit for proceeds of $119,750 and 2,135,711 flow-through units at 28 cents per unit for proceeds of $598,000. The MineralFields Group of Toronto, Ont., purchased $500,000 of the flow-through units.
"We are very pleased to be renewing our relationship with the MineralFields Group," said president and chief executive officer Randy Rogers. "They have proven to be a reliable source of equity capital in the recent evolution of the company. These financings are an important milestone in Solomon's growth and we look forward to working with the MineralFields Group and the other investors as we develop our British Columbia and Yukon territory gold projects."
Each unit consisted 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 four-month restricted resale period.
Finders' fees of 8 per cent were paid on funds raised from investors introduced by finders. The finders were also issued non-transferable warrants to purchase that number of (non-flow-through) units equal to 8 per cent of the number of units from investors introduced by them. The finder warrants are exercisable for two years at 28 cents per unit (25 cents per unit for the non-flow-through units) in the first year and 30 cents per unit in the second.
All shares issued and issuable on exercise of warrants will be subject to resale restrictions until Aug. 15, 2010, for the ordinary units and Aug. 24, 2010, for the flow-through units.
The proceeds of this placement will be used to finance the exploration and development of Solomon's British Columbia and Yukon properties, general corporate overheads, and the company's continuing efforts to locate more advanced exploration and development projects.