Canadian Arrow Mines Announces Increase in Underwriters' Option in Previously Announced "Bought Deal" Financing -
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
SUDBURY, ON, March 29 /CNW/ - Canadian Arrow Mines Ltd. (CRO:TSX-V) (the "Company") is pleased to announce that it has amended the terms of the previously announced bought deal with Canaccord Capital Corporation ("Canaccord") to increase the size of the underwriters' option granted to Canaccord by 3,500,000 units (the "Units") subject to the approval of the TSX Venture Exchange and, if required by the Exchange, a majority of the shareholders of the Company (which may be obtained by the written consent of shareholders holding more than 50% of the outstanding common shares of the Company). Under the amended agreement, Canaccord now has the option to purchase up to an additional 5,000,000 Units at any time up to 48 hours prior to the closing date. If the full underwriters' option is exercised, Canaccord will purchase up to a total of 5,000,000 additional Units, for additional gross proceeds of C$2.5 million. Assuming that the underwriters' option is exercised in full, the total gross proceeds to the Company from this financing will be C$7,500,000.
Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant, expiring 18 months from the closing date, will entitle the holder to subscribe for one additional common share at a price of C$0.70.
The Company plans to use the net proceeds of this financing to continue exploration of the Company's mineral properties and for general working capital purposes.
The offering is scheduled to close on or about April 17, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under this offering will be offered by way of private placement exemptions in all the provinces of Canada, offshore and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States. The Company and Canaccord agree that the Units will not be offered or sold in the United States or to, or for the account of, United States persons except to accredited investors pursuant to the exemption from the registration requirements contained under the United States Securities Act of 1933, as amended to deal with the possibility that the Units may be sold to United States persons.
About Canadian Arrow Mines, Ltd.
Canadian Arrow Mines, Ltd. is an established Canadian exploration and development Company committed to developing and advancing base metal deposits close to existing infrastructure through exploration, development and acquisition. Shares of Canadian Arrow Mines trade on the TSX Venture Exchange under the symbol "CRO".
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Source: Canada NewsWire (March 29, 2007 - 2:06 PM EDT)
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