|
MGI SECURITIES BROKERED PRIVATE PLACEMENT
1ST & 2ND CLOSINGS
Bralorne Gold Mines Ltd.
(the �Company�) announces that it has closed the first tranche of the
brokered private placement with MGI Securities Inc. of Toronto, Ontario
( �MGI�) first announced on July 13, 2009 and the first and second
tranches of a concurrent non-brokered private placement for aggregate
gross proceeds of $3,910,238.70.
The
first closing, dated September 28, 2009 (the �First Closing�), of securities
placed by MGI consisted of 2,914,222 Units at a price of $0.90 per Unit
and 721,462 Flow-Through Units at a price of $0.95 per Flow-Through
Unit, for total gross proceeds of $3,308,188.70. The Units
consist of one common share and one non-transferable share purchase
warrant (a �Warrant�). The Flow-Through Units for the brokered
private placement consist of one flow through share and one
Warrant. The flow through shares will entitle the investor to the
income tax benefits of the qualifying Canadian exploration expenses
incurred by the Company, which will be �flowed-through� to the investor
in accordance with Canadian income tax laws.
The First Closing
non-brokered private placement consisted of a of 107,000 Flow-Through
Units and the second closing, dated September 30, 2009 (the �Second
Closing�) consisted of 556,000 Units, for total aggregate gross
proceeds of $602,050.00.
Each Warrant comprised
within the Flow-Through Units and Units entitles the investor to
purchase one additional common share at an exercise price of $1.25 per
share for a period of 24 months from the date of issue, provided that
if the Company�s common shares close at $2.00 per share over 20
consecutive trading days, then the Company will have the right to
require conversion of the First Warrants.
The securities issued under
the First Closing and the Second Closing of this private placement are
subject to a four month and one day hold period, expiring on January
29, 2010 and January 31, 2010 respectively.
The Company has paid a cash
commission of 8% of proceeds from the funds raised by MGI and its
sub-agents and non-transferable compensation options have been granted
to MGI and its sub-agents, exercisable to purchase Units equal to 10%
of the aggregate number of Flow-Through Units and Units sold by MGI and
its sub-agents for a total of 363,568 Units. The Company has also
paid a finder (�Finder�) a cash commission of $1,208 and issued 1,600
compensation options Units placed under the non-brokered private
placement. Each compensation options will entitle MGI (or any
member of the selling group, who is assigned the right to receive a
portion of the Compensation Option) and the Finder to purchase one Unit
at an exercise price of $0.90 per Unit for a period of 24 months from
the date of issuance, such Agent�s Compensation Options expiring on
September 28, 2011 as per the applicable closing date.
The net proceeds of the
offerings will be used for additional exploration and development work
on the Company's mining properties and for general working capital
requirements.
The Company is a Canadian
junior mining and exploration company, whose corporate strategy is to
build shareholder value through the exploration and development of
economically viable mineral properties. The Company�s current
project is a 100% interest in the Bralorne Gold Mine, BC.
For more information visit: www.bralorne.com. or, please contact:
Bill Kocken, Chief Executive Officer & President
Johnathon Smith, IRO
ON BEHALF OF THE BOARD
�William Kocken�
___________________________________
William Kocken,
Chief Executive Officer & President
The TSX Venture Exchange has not
reviewed and does not accept the responsibility for the accuracy or
adequacy of this release.
This press release
contains certain forward-looking statements. Investors are cautioned
that certain statements in this release are "forward-looking
statements" and involve both known and unknown risks,
uncertainties and other factors. Such uncertainties include, among
others, certain risks associated with the operation of the company
described above. The Company's actual results could differ materially
from expected results.
|