$4,160, 000 NON-BROKERED PRIVATE PLACEMENT
December 4, 2010 �� Source Exploration Corp. ("Source" or the
"Company") (TSX-V: SOP) is pleased to announce that it has
arranged a non-brokered private placement of up to 8,000,000 units of the
Company (the "Units���) at a price of $0.52 per Unit
for gross proceeds of up to $4,160,000 (the "Offering���). Each Unit will consist of one
common share of the Company and one half of one common share purchase
warrant (a "Warrant") of the Company. Each Warrant will entitle
the holder to purchase one common share of the Company for a period of
eighteen months from the closing date at a price of $0.70.
The Company has agreed
to allocate a portion of the Offering to subscribers found by Axemen Resource Capital Ltd. an exempt market dealer,
and may agree to similar allocations to other exempt market or investment
dealers. The Company will pay finder's fees equal to 5.0% of subscription
amounts found, payable in cash or Units, plus issue finder's warrants in an
amount equal to 5.0% of the Units subscribed for, with each such finder's
warrant exercisable into one common share of the Company at a price of
$0.60 for a period of 18 months from closing of the Offering.
Closing of the Offering
is anticipated to occur on or about December 21st, 2010 and is
subject to receipt of applicable regulatory approvals including the
approval of the TSX Venture Exchange. The securities issued under the
Offering will be subject to a four month hold period pursuant to applicable
Canadian securities laws which will expire four months and one day from the
date of closing of the Offering. The securities to be issued under the
Offering will be offered by way of private placement to accredited
investors in each of the provinces of Ontario and British Columbia and such
other jurisdictions as may be determined by the Company..
The proceeds from the
Offering will be used to continue exploration on the Company's Las Minas
Gold �� Copper Skarn
project located in the State of Veracruz, Mexico and for general working
capital purposes.
The securities being
offered have not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the
United States or to, or for the account or benefit of, U.S. persons absent
registration or an applicable exemption from registration requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdictions in which such offer, solicitation or sale
would be unlawful.
About Source Exploration
Source Exploration is a
Canadian based mineral exploration company focused on the evaluation,
acquisition and development of economic gold and silver deposits in Mexico.
For more information,
please contact:
Brian Robertson, President& CEO
Phone: 807-251-1816
Fax: 807-474-4272
e-mail: info@sourceexploration.com
Website at http://www.sourceexploration.com/
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.
Cautionary Statement Regarding Forward-Looking Information: This news release includes
certain information that may constitute "forward-looking information��� under applicable Canadian securities
legislation. Forward-looking information includes, but is not limited to,
statements about use of proceeds of the Offering. Forward-looking
information is based on the opinions and estimates of management that,
which considered reasonable, are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results
to differ materially from those projected in the forward- looking
information. Such risks and uncertainties include, but are not limited to,
risks associated with the mining industry, the risk of commodity price and
foreign exchange rate fluctuations, the ability of the Corporation to fund
the capital and operating expenses necessary to achieve the business
objectives of the Corporation, as well as those risks described in public
disclosure documents filed by the Corporation. Due to the risks,
uncertainties and assumptions inherent in forward-looking information,
prospective investors in securities of the Corporation should not place
undue reliance on such forward-looking information. The Corporation
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new information, future
events or otherwise, except as required by law.
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