Golden Peaks to raise $8.25-million privately
2006-03-07 10:56 ET - News Release
Mr. Scott Emerson reports
GOLDEN PEAKS ANNOUNCES PLACEMENT OF MAJOR FINANCING
Golden Peaks Resources Ltd. has engaged Ocean Equities Ltd., a United Kingdom-based securities firm specializing in the resource sector, as lead agent in connection with a private placement of 5.5 million units at a price of $1.50 per unit for total gross proceeds of $8.25-million. The company previously filed a price reservation form concerning the private placement with the TSX Venture Exchange. Ocean has advised the company that it currently anticipates that the financing will be fully placed.
Each unit consists of one common share of the company and one warrant entitling the holder to acquire one additional common share for a period of two years at the exercise price of $2.25.
The company will pay to Ocean Equities on closing a cash commission of 5 per cent of the gross proceeds of the offering. In addition, the company will to issue to Ocean Equities warrants equal to 5 per cent of the number of units sold having the same terms as the warrants included in the units. The financing will be closed promptly upon receipt of all necessary regulatory approvals.
The proceeds of the financing will be used to finance continuing exploration programs on the company's Argentine properties and for general working capital.
Said Scott Emerson, chairman of the board: "We are extremely pleased with the highly favourable response to this financing, which represents a strong vote of confidence in the company from the investment community. This raise will give us the necessary resources to advance our plans for the growth and development of the company. At La Fortuna, we have a property of significant merit and we will be continuing with an aggressive and extensive exploration program."
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