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Cornerstone
Capital Resources Inc. (TSX VENTURE:CGP - News; FRANKFURT:GWN - News; BERLIN:GWN - News; PINK SHEETS:CTNXF - News) announces a private
placement financing of 9,375,000 flow-through units for gross proceeds of
$1.5 million. Each flow-through unit will be priced at $0.16 and will consist
of one common share and one half of one transferrable, callable,
non-flow-through share purchase warrant. One whole warrant will entitle the
holder to acquire one additional common share at a price of $0.20 per share
for a period of one year after closing of the offering, and thereafter at
$0.25 per share for one additional year. A cash finder's fee equal to 6.07%
and a cash due diligence fee of 0.5% are payable at closing, as well as a
finder's fee option to purchase units at an exercise price of $0.16 per unit
equal to 6.53% of the number of units subscribed for. The finder's fee option
will have the same terms as the flow-through units. The gross proceeds from
the sale of the flow-through units will be used by the Company for early
stage and advanced exploration expenses on projects in Canada that qualify as
"Canadian exploration expenses" under the Income Tax Act (Canada).
The
Company will have the right to accelerate the expiry date of the warrants to
thirty (30) days from the date of the exercise of such acceleration right by
providing holders of the warrants with written notice of such reduction in
the exercise period. The right to accelerate will be triggered in the event
that the average closing price of the Company's common shares is $0.35 or
more per share over a period of twenty (20) consecutive trading days during
the first twelve months after closing of the offering, or $0.40 or more per
share over a period of twenty (20) consecutive trading days during the second
twelve months.
About
Cornerstone
Cornerstone
Capital Resources Inc. is a mineral exploration company based in Mount Pearl,
Newfoundland and Labrador, Canada, with a diversified portfolio of projects
in Canada and Ecuador and a strong technical team that has proven its ability
to identify, acquire and advance properties of merit. The company's business
model is based on generating exploration projects whose subsequent
development is funded primarily through joint venture partnerships.
Cautionary
Notice:
Certain
statements contained in this press release may be considered as
forward-looking. Such forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from
estimated or implied results. While Cornerstone anticipates that subsequent
events may cause its views to change, it expressly disclaims any obligation
to update the Forward-Looking Statements contained herein.
Further
information is available on Cornerstone's website:
www.cornerstoneresources.com.
Investors
can access and join the following Cornerstone social media channels:
Facebook
(http://www.facebook.com/pages/Cornerstone-Resources-Inc/152481978112151)
Twitter
(http://twitter.com/Cornerstone_cgp)
YouTube
channel (http://www.youtube.com/user/CornerstoneResource)
Flickr
(http://www.flickr.com/photos/cornerstoneresources)
The
direct link to a recent CEO interview is: http://www.rblcommunications.com/webcasts/CGPnov122010/CGPnov122010.html
On
Behalf of the Board,
Glen
H. McKay, President & CEO
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.
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