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CROWFLIGHT MINERALS INC. ("Crowflight" or the "Company") (TSX:CML
- News) today announced
that the Company has arranged a non-brokered private placement (the
"Placement") of up to 600 million units (each a "Unit")
at a price of $0.05 per Unit to raise aggregate proceeds of $30 million. Each
Unit is comprised of one common share and one half of one share purchase
warrant. Each whole share purchase warrant (a "Warrant") entitles
the holder to acquire one additional common share for a period of two years
at a price of $0.10. The Warrants will have standard anti-dilution
provisions.
A finder's fee of 10% of the proceeds
placed is payable in respect of portions of the Placement to arm's length
parties. Insiders of the Company will not be participating in the Placement
and it is not anticipated that any new shareholders holding greater than 10%
of the outstanding shares of the Company will be created as a result of the
Placement. The Placement is not expected to materially affect control of the
Company.
Proceeds of the Placement will be
utilized to bring all accounts payable current, retire portion of convertible
debenture, and acquire necessary mining equipment to resume the mine
operation at Bucko Lake Mine and for its general working capital.
A total of up to 900,000,000 common
shares are being issued or made issuable pursuant to the Placement,
representing approximately 140% of the current number of common shares of the
Company outstanding. The Placement is subject to the approval of Toronto
Stock Exchange and at least 50% of the Company's shareholders' approval
pursuant to the policies of Toronto Stock Exchange as the total number of
common shares being issued or made issuable under the Placement is more than
25% of the current issued and outstanding common shares of the Company. King
Place, the largest shareholder and currently holding 47.6% of the issued and
outstanding common shares of the Company, will not participate in the
Placement and has provided its consent to the Placement. Pursuant to section
604 d) of the TSX Company Manual, the Company will send out letters to
certain shareholders of the Company to obtain their written approval before
the closing of the Placement, which is expected to be on or about March 7,
2011.
About Crowflight
Minerals Inc.
Crowflight Minerals Inc. (TSX:CML - News) is a Canadian junior
mining company that owns and operates the Bucko Lake Nickel Mine near Wabowden, Manitoba. The Company also holds nickel, copper
and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and
Sudbury Basin.
Further information is available on the
Company's website at www.crowflight.com.
Cautionary Note on Forward-Looking
Information
This press release contains
forward-looking statements under Canadian securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to the
outcome of litigation and seeking additional financing and its likelihood of
success. The Company does not undertake to update any forward-looking
statements, except in accordance with applicable securities laws
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