Silver Spruce Raises $6,325,000 in Flow Through Funds
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION VIA
U.S.
NEWSWIRE
November 14, 2007 - Bridgewater, NS - Silver Spruce Resources Inc.
("Silver Spruce") is pleased to announce it has closed the
previously announced brokered private placement with PI Financial Corp. (the
"Agent") raising gross proceeds of $6,325,000 (the
"Offering"). The Offering consisted of the issuance of
5,500,000 flow-through units ("FT Units") of Silver Spruce,
including the full exercise of the over-allotment option of an additional
500,000 FT
Units.
Each FT Unit was issued at a price of $1.15 per FT Unit and consisted of
one flow-through common share and one half of a common share purchase
warrant, with each whole warrant exercisable at a price of $1.75 per
non-flow through common share for a period of 18 months following the
closing of the Offering.
As consideration for acting as agent, Silver Spruce paid to the Agent a
commission of 7% of the aggregate gross proceeds of the Offering in a
combination of cash and units, having the same terms as the FT Units of
the Offering other than being issued on a non-flow through basis. In
addition, Silver Spruce paid to the Agent compensation options in
aggregate equal to 7% of the total number of FT Units sold under the
Offering, which entitle the Agent the right to purchase, at an exercise
price equal to $1.75, one common share for a period of 18 months
following the closing.
The gross proceeds raised from the issuance of the FT Units shall be used
for general exploration expenditures on Silver Spruce's Newfoundland and
Labrador projects, which shall constitute Canadian exploration expenses
(as defined in the Income Tax Act (Canada)) and shall be renounced for
the 2007 taxation year.
All securities issued in connection with the Offering are subject to a
four-month hold period in accordance with applicable securities
requirements. The Offering is subject to fulfillment
of the requirements of the TSX Venture Exchange.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company primarily focused on
uranium in the Central Mineral Belt (CMB) of Labrador, Canada.
With over 12,500 claims totaling approximately
3,100 square kilometers in Labrador,
Silver Spruce is the second largest landholder in one of the world's
premier emerging uranium districts. With experienced partners and strong
financial backing, Silver Spruce is emerging as a leading uranium
explorer in Canada.
For more information on the Company and its projects, please refer to the
website, www.silverspruceresources.com.
For Further Information Contact:
The
TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release. The Company seeks Safe Harbour.
This news release does not constitute an offer to sell any of the
Securities in the United
States. The Securities have not been
and will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States
or to U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such registration
is available.
|