Strikepoint completes $7.18-million private placement
2009-12-17 12:50 ET - News Release
Mr. Richard Boulay reports
STRIKEPOINT GOLD INC. CLOSES $7,188,984 PRIVATE PLACEMENT
Strikepoint Gold Inc. has closed a private placement, led by Dundee Securities Corporation and including PI Financial Corp. The placement included the sale of 4.68 million common shares issued on a flow-through basis pursuant to the Income Tax Act (Canada) at a price of 47 cents per flow-through common share for gross proceeds of $2.2-million and the sale of 12.46 million non-flow-through units at a price of 40 cents per unit for gross proceeds of $4.96 million, each unit comprising one common share and one-half of one transferable common share purchase warrant. Each full warrant is exercisable into one common share of the Corporation at an exercise price of 60 cents for a period of 24 months from the closing date. The total gross amount raised in the offering was $7.18-million. The sale of 12.46 million units represents a 125,000 unit increase over the amount announced in Strikepoint's press release in Stockwatch of Nov. 30, 2009.
As consideration to the agents, the corporation has paid a commission of 6 per cent of the total proceeds raised upon closing and has issued agent warrants equal to 6 epr cent of the units and flow-through common shares issued pursuant to this offering. Each agent warrant will be exercisable to acquire one common share at 60 cents for a period of 24 months from the closing date. The securities issued under this financing will be subject to a four-month hold period from the date of closing of the offering. The corporation intends to use the net proceeds for exploration of its mineral properties located in Manitoba. Expenditures from the flow-through common shares will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2009 taxation year.
