EXPLOR RESOURCES INC. ("Explor" or the "Company")(TSX VENTURE:EXS - News) is pleased to announce
a brokered private placement of up to 2,000,000 units of Explor
to raise aggregate gross proceeds of up to CDN$1,000,000 (the
"Offering") and up to 2,000,000 units to be issued on a
flow-through basis to raise aggregate gross proceeds of up to CDN$1,000,000 (the
"Concurrent Flow-Through Offering", and when referred to
collectively with the Offering, the "Private Placement"). The
Private Placement is comprised of (i) units of Explor to be issued on a non-flow-through basis (the
"Units") at a price of $0.50 per Unit, where each Unit is comprised
of one common share in the capital of the Company (a "Common
Share") and one common share purchase warrant (a "Warrant")
and (ii) units of Explor to be issued on a
flow-through basis (the "Flow-Through Units") at a price of $0.50
per Flow-Through Unit, where each Flow-Through Unit is comprised of one
flow-through Common Share (a "Flow-Through Common Share") and
one-half (1/2) of one Warrant. Each whole Warrant comprised within the Units
or Flow-Through Units entitles the subscriber to purchase one additional non
flow-through Common Share at a price of $0.70 per Common Share for a period
of 24 months from the date of closing.
The Company has engaged Union Securities
as agent (the "Agent") to source subscribers for the Units and
Flow-Through Units offered for sale under the Private Placement. The Agent
will receive (i) a cash commission of 8% of the
aggregate gross proceeds received from the sale of Units and Flow-Through
Units, and (ii) non-transferable compensation options to acquire such number
of units equal to 10% of the aggregate number of Units and Flow-Through Units
sold under the Private Placement.
The Company has also granted the Agent
an over-allotment option (the "Over-Allotment Option") to increase
the size of the Private Placement by up to an additional $1,000,000 in Units,
Flow-Through Units or any combination thereof, exercisable at any time on or
before two days prior to the closing date of the Private Placement, at the
issue price.
The securities that will be issued
pursuant to this Private Placement will be subject to a hold period of four
months and a day from the date of closing. This placement is subject to the
approval of the TSX Venture Exchange.
Explor Resources Inc. is a publicly listed
company trading on the TSX Venture Exchange (EXS).
This press release was prepared by Explor Resources Inc. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
About Explor
Resources Inc.
Explor Resources Inc. is a Canadian-based
natural resources company with mineral holdings in Ontario, Quebec,
Saskatchewan and New Brunswick. Explor is currently
focused on exploration in the Abitibi Greenstone Belt. The belt is found in
both provinces of Ontario and Quebec with approximately 33% in Ontario and
67% in Quebec. The Belt has produced in excess of 180,000,000 ounces of gold
and 450,000,000 tonnes of cu-zn
ore over the last 100 years. The Company is headquartered in Quebec and was
incorporated in Alberta in 1986.
This document may contain
forward-looking statements relating to Explor's
operations or to the environment in which it operates. Such statements are
based on operations, estimates, forecasts and projections. They are not
guarantees of future performance and involve risks and uncertainties that are
difficult to predict and may be beyond Explor's
control. A number of important factors could cause actual outcomes and results
to differ materially from those expressed in forward-looking statements,
including those set forth in other public filling. In addition, such
statements relate to the date on which they are made. Consequently, undue
reliance should not placed on such forward-looking
statements. Explor disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, save and except as may
be required by applicable securities laws.
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