Cream Minerals Ltd. Closes $6,000,000 Bought Deal Offering with Powerone Capital Markets Limited, Appoints New Director
-- December 22, 2010 - Cream Minerals Ltd. (TSX-V - CMA) ("Cream"
or the "Company") is
pleased to announce that it has closed the previously announced bought deal
private placement of units. PowerOne Capital
Markets Limited was sole underwriter of the offering. An aggregate of
37,500,000 units (the "Units") were sold at $0.16 per Unit for
aggregate gross proceeds to the Company of $6,000,000.
Each Unit consists of one common share of the Company (a "Common
Share") and one common share purchase warrant of Cream (a
"Warrant"). Each Warrant entitles the holder thereof to acquire
one Common Share of the Company at an exercise price of $0.24 per Common
Share until December 21, 2012, provided that 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
The Company is pleased to announce the appointment of Mr. Gerry Feldman to
the Board of Directors of Cream. Mr. Feldman is a Chartered Accountant and
Vice President of Corporate Development and Chief Financial Officer of Pinetree Capital Inc. and has extensive experience as
an advisor to public companies.
Securities issued in the Offering are subject to a four month hold period
in Canada expiring on April 22, 2010.
For further information, please contact:
Michael E. O'Connor
President & CEO
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
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 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 unforeseen events which result in the Company having
to divert funds to other purposes. 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: changes in the business and
affairs of Cream and 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.