| | Published : December 09th, 2010 | Announces $5,000,000 Bought Deal Private Placement Offering, Allows Minco Offer to Expire |
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Cream Minerals Ltd. Announces $5,000,000 Bought
Deal Private Placement Offering, Allows Minco Offer to Expire
Vancouver, BC -
December 8, 2010 - Cream Minerals Ltd. (TSX-V - CMA) ("Cream" or
the "Company") announces that
it has entered into an agreement with PowerOne
Capital Markets Limited (the "Underwriter"), to act as sole
underwriter on a bought deal basis, for a brokered private placement (the
"Offering") of 31,250,000 units (the "Units") at $0.16
per Unit for aggregate gross proceeds to the Company of $5,000,000 with an
over-allotment option exercisable by the Underwriter in its sole discretion
at any time before the closing date of the Offering (the "Closing
Date") to increase the size of the Offering by up to $1,000,000.
Each Unit will consist of one common share of the Company (a "Common
Share") and one common share purchase warrant of Cream (a
"Warrant"). Each Warrant will entitle the holder thereof to
acquire one Common Share of the Company at an exercise price of $0.24 per Common
Share for a period of 24 months from the Closing Date. However, if after
four months and one day following the Closing Date, the Common Shares of
the Company close on the TSX Venture Exchange at a price in excess of $0.60
per Common Share for 20 consecutive days, the Company will be able to
accelerate the expiry of the Warrants to the date that is 30 days after
notice of the new expiry date is provided to the holders of the Warrants.
The net proceeds from the Offering will be used by the Company for
exploration of its natural resource properties and general and
administrative expenditures.
In connection with the Offering, a cash commission of 8% of the aggregate
gross proceeds arising therefrom will be paid to
the Underwriter. In addition, upon closing of the Offering the Underwriter
will receive such number of warrants (the "Compensation
Warrants"), equal to 10% of the total number of Units issued in
connection with the Offering. The Compensation Warrants will be exercisable
at a price of $0.16 per Compensation Warrant for a period of 24 months from
the Closing Date to acquire one Unit.
The private placement is subject to the approval of the TSX Venture
Exchange. Securities issued in the Offering will be subject to a four month
hold period in Canada. 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 securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful.
Minco Offer
Cream has elected to allow the partial purchase, option and joint venture
offer received from Minco Silver Corporation in respect of Cream's Nuevo Milenio project to expire. As previously announced,
Minco had agreed to leave its offer open for acceptance for one day
following the expiry of the unsolicited bid for Cream made by Endeavour
Silver Corp. That bid expired, without any take-up of shares by Endeavour,
on December 6, 2010.
For further information, please contact:
Michael E. O'Connor
President & CEO
Robert Paul
Investor Relations
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
Email: info@creamminerals.com
Neither the 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.
This news release
contains forward-looking statements and information within the meaning of
applicable Canadian securities laws and the "safe harbor'' provisions
of the U.S. Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and beliefs and
are subject to a number of risks and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements. Examples of such forward-looking information include, but are
not limited to: whether the Offering is completed and the proposed use of
proceeds from the Offering. Forward-looking information is based on a
number of assumptions which may prove to be incorrect, including, but not
limited to: the ability of the Company and the Underwriter to complete the
Offering and receipt of all necessary approvals to the for the completion
of the Offering. Although Cream believes that the expectations expressed in
such forward looking statements are reasonable, there is no assurance that
developments beyond its control will not result in Cream's expectations
regarding such matters proving to be incorrect. Factors which could cause
actual results to differ materially from current expectations include, but
are not limited to: risks and uncertainties relating to the Offering; the
Underwriter's ability to complete the Offering; changes in the business and
affairs of Cream; a failure to receive all necessary governmental,
regulatory and stock exchange approvals required by in connection with the
Offering; inherent uncertainties involved in mineral resource estimates;
fluctuations in interest rates and exchange rate; general economic
conditions; competitive conditions in the businesses in which Cream
operates; and changes in laws, rules and regulations applicable to Cream.
Cream specifically disclaims any obligation to update these forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law. These forward-looking statements
should not be relied upon as representing Cream's views as of any date
subsequent to the date of this news release.
You can also
view this News Release on our website at:
http://www.creamminerals.com/s/NewsReleases.asp?ReportID=432465
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www.creamminerals.com
TSX Venture Exchange: CMA
OTC Bulletin Board: CRMXF
U.S. 20-F Registration: 000-29870
Frankfurt Stock Exchange: WKN 866036
(www.finanztreff.de)
Cream Minerals Ltd. Announces $5,000,000 Bought
Deal Private Placement Offering, Allows Minco Offer to Expire
Vancouver, BC - December 8, 2010 - Cream Minerals Ltd. (TSX-V - CMA)
("Cream" or the "Company") announces that it has entered into an
agreement with PowerOne Capital Markets Limited (the
"Underwriter"), to act as sole underwriter on a bought deal basis,
for a brokered private placement (the "Offering") of 31,250,000 units
(the "Units") at $0.16 per Unit for aggregate gross proceeds to the
Company of $5,000,000 with an over-allotment option exercisable by the
Underwriter in its sole discretion at any time before the closing date of the
Offering (the "Closing Date") to increase the size of the Offering by
up to $1,000,000.
Each Unit will consist of one common share of the Company (a "Common
Share") and one common share purchase warrant of Cream (a
"Warrant"). Each Warrant will entitle the holder thereof to acquire
one Common Share of the Company at an exercise price of $0.24 per Common Share
for a period of 24 months from the Closing Date. However, if after four months
and one day following the Closing Date, the Common Shares of the Company close
on the TSX Venture Exchange at a price in excess of $0.60 per Common Share for
20 consecutive days, the Company will be able to accelerate the expiry of the
Warrants to the date that is 30 days after notice of the new expiry date is
provided to the holders of the Warrants.
The net proceeds from the Offering will be used by the Company for exploration
of its natural resource properties and general and administrative expenditures.
In connection with the Offering, a cash commission of 8% of the aggregate gross
proceeds arising therefrom will be paid to the
Underwriter. In addition, upon closing of the Offering the Underwriter will
receive such number of warrants (the "Compensation Warrants"), equal
to 10% of the total number of Units issued in connection with the Offering. The
Compensation Warrants will be exercisable at a price of $0.16 per Compensation
Warrant for a period of 24 months from the Closing Date to acquire one Unit.
The private placement is subject to the approval of the TSX Venture Exchange.
Securities issued in the Offering will be subject to a four month hold period
in Canada. 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
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.
Minco Offer
Cream has elected to allow the partial purchase, option and joint venture offer
received from Minco Silver Corporation in respect of Cream's Nuevo Milenio project to expire. As previously announced, Minco
had agreed to leave its offer open for acceptance for one day following the
expiry of the unsolicited bid for Cream made by Endeavour Silver Corp. That bid
expired, without any take-up of shares by Endeavour, on December 6, 2010.
For further information, please contact:
Michael E. O'Connor
President & CEO
Robert Paul
Investor Relations
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
Email: info@creamminerals.com
Neither
the 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.
This news release contains forward-looking statements and information
within the meaning of applicable Canadian securities laws and the "safe
harbor'' provisions of the U.S. Private Securities Litigation Reform Act of
1995. These statements are based on management's current expectations and
beliefs and are subject to a number of risks and uncertainties that could cause
actual results to differ materially from those described in the forward-looking
statements. Examples of such forward-looking information include, but are not
limited to: whether the Offering is completed and the proposed use of proceeds
from the Offering. Forward-looking information is based on a number of assumptions
which may prove to be incorrect, including, but not limited to: the ability of
the Company and the Underwriter to complete the Offering and receipt of all
necessary approvals to the for the completion of the Offering. Although Cream
believes that the expectations expressed in such forward looking statements are
reasonable, there is no assurance that developments beyond its control will not
result in Cream's expectations regarding such matters proving to be incorrect.
Factors which could cause actual results to differ materially from current
expectations include, but are not limited to: risks and uncertainties relating
to the Offering; the Underwriter's ability to complete the Offering; changes in
the business and affairs of Cream; a failure to receive all necessary
governmental, regulatory and stock exchange approvals required by in connection
with the Offering; inherent uncertainties involved in mineral resource
estimates; fluctuations in interest rates and exchange rate; general economic
conditions; competitive conditions in the businesses in which Cream operates;
and changes in laws, rules and regulations applicable to Cream. Cream
specifically disclaims any obligation to update these forward-looking
statements, whether as a result of new information, future events or otherwise,
except as required by law. These forward-looking statements should not be
relied upon as representing Cream's views as of any date subsequent to the date
of this news release.
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Minco Silver Corp
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DEVELOPMENT STAGE |
CODE : MSV.TO |
ISIN : CA60254C1005 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Minco Silver is a silver development stage company based in Canada. Minco Silver develops silver, gold, lead and zinc in China, and holds various exploration projects in China. Its main asset in development is FUWAN SILVER in China. |
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