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Source Exploration
Corp. Completes $1,600,000 Non – Brokered Private Placement
SOURCE EXPLORATION CORP.
(the "Corporation��� or "Source���) (TSX-V: SOP) is pleased to announce the
closing on November 5, 2010 of its previously announced non-brokered
private placement of 8,000,000 units (the "Units���) at a price of $0.20 per Unit
for gross proceeds of $1,600,000 (the "Offering���). The Offering was originally
announced on October 13, 2010 and, due to demand, was increased in size, as
announced on October 14, 2010.
Each Unit consists of
one common share of Source and one-half of one transferable common share
purchase warrant (each whole warrant a "Warrant���). Each Warrant entitles the
holder thereof to purchase one additional common share of Source at a price
of $0.35 at any time until May 4, 2012, provided that if the closing price
of the common shares of Source on the TSX Venture Exchange is equal to or
greater than $0.45 per common share for a period of twenty consecutive
trading days at any time after four months and one day after the closing
date of the Offering, Source may accelerate the expiry date of the Warrants
by giving notice to the holders thereof and in such case the Warrants will
expire on the tenthday after the date on which
such notice is given by Source (the "Acceleration Provision���).
The Corporation paid
finder's fees in the amount of $32,000 and issued 162,500 non-transferable
finder's warrants (the "Finder's Warrants���) to various arm's length parties
in connection with the Offering. Each Finder's Warrant entitles the holder
thereof to purchase one additional common share at an exercise price of
$0.30 per share until May 4, 2012, subject to the Acceleration Provision.
All the shares issued
in Offering and any resulting shares issued upon the exercise of any
warrants will be subject to a hold period expiring on March 6, 2011.
Source plans to use the
net proceeds from the sale of the Units to fund the Company's exploration
program at its Mexico properties and for general working capital purposes.
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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