Shear Minerals Ltd. Closes $3.2 Million Private Placement
December 20, 2007
EDMONTON, Alberta - Shear Minerals Ltd.
(“Shear”) (SRM:TSXV) today announced that it closed a non-brokered
private placement of 4,263,266 flow through common shares of Shear (“FT
Shares”) at a price of $0.75 per FT Share for aggregate gross proceeds of
$3,197,449.50 million.
In connection with the sale of
2,666,666 FT Shares to the MineralFields Group, Shear paid Limited Market
Dealer Inc. the sum of $130,000 (equal to 6.5% of the gross proceeds realized
from the sale of such FT Shares) and issued non-transferable share purchase
warrants (Finder’s Warrants) entitling it to acquire 186,666 common
shares of Shear (“Common Shares”) (equal to 7% of such FT Shares)
at a price of $0.75 per Common Share at anytime until December 19, 2009. In
connection with the sale of 1,433,267 FT Shares, Shear paid Integral Wealth
Securities Limited the sum of $69,871.77 and issued Finder’s Warrants to
acquire 100,329 Common Shares. Shear also paid a due diligence fee of $10,600
(inclusive of GST) to Limited Market Dealer Inc.
The FT Shares were sold to qualified
purchasers in reliance upon exemptions from the prospectus and registration
requirements of applicable securities legislation. The proceeds will be used
to incur expenditures which qualify as Canadian Exploration Expenses and will
be spent primarily on Shear’s Churchill Diamond Project in Nunavut. The
FT Shares, Finder’s Warrants and Common Shares issued upon exercise of
the Finder’s Warrants are subject to a restricted period which expires on
April 20, 2008.
“We
are very pleased to be continuing our relationship with MineralFields
Group”, said Pamela Strand, President and CEO of Shear. MineralFields
Group (a division of Pathway Asset Management) is a Toronto-based mining fund
that offers its tax-advantaged super flow-through limited partnerships to
investors in Canada as well as hard-dollar resource limited partnerships.
Shear
Minerals Ltd. is a Canadian-based exploration company focused on Diamond
exploration in the Canadian North where it explores in established Diamond
districts and has discovered new ones. Shear currently has a portfolio of eight
Diamond projects, seven of which are drill-ready. The Company has advanced its
58%-owned Churchill Diamond property in Nunavut from a conceptual grassroots
project to a new kimberlite district.
For further
information please contact:
Pamela Strand,
President and CEO.
Tel: (780)
435-0045; Fax: (780) 989-0322
www.shearminerals.com
E-Mail:
info@shearminerals.com
The TSX
Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.