Roxmark raises $3.47-million privately, buys four mines
2005-01-24 16:06 ET - News Release
Mr. David Malouf reports
ROXMARK COMPLETES $3.47 MILLION FINANCING, AGREES TO ACQUIRE CLAIMS SURROUNDING MOLYBDENUM PROPERTY
Roxmark Mines Ltd. has completed the non-brokered private placement financing previously reported in Stockwatch on Oct. 29, 2004, for gross proceeds of $3.47-million. The final tranche was completed on Jan. 20, 2005, generating $449,600.
No fees or commissions were paid in connection with the financing, in which Roxmark sold 2,212,667 Class A units for 15 cents each and 26,141,665 Class B units for 12 cents each. Each Class A unit consists of one flow-through common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one common share at a price of 17 cents for a period of one year from closing. Each Class B unit consists of one common share and one common share purchase warrant which entitles the holder to purchase one common share at a price of 17 cents for a period of two years from closing.
Roxmark now has a total of 100,846,855 issued common shares and 40,278,634 common share purchase warrants issued and outstanding. When and if all warrants are exercised, $6.21-million will be added to the company's working capital.
The proceeds are being used to cover the cost of advancing exploration and development of Roxmark's gold and molybdenum properties in the Geraldton-Beardmore area of Northwestern Ontario, and for general corporate purposes.
On Jan. 10, the company negotiated an agreement in principle to acquire four mining claims (39 units), totalling 1,560 acres in Dorothea township, Ontario. The claims surround on the north, south and east the company's 16-claim, 640-acre Nortoba-Tyson molybdenum and gold property. In consideration, Roxmark agreed to pay $40,000 in cash and issue 150,000 common shares over a two-year period. A 2-per-cent net smelter return is reserved for the prospectors, Robert Cote and Dianne Cote, of which half can be purchased by the company for $1-million |
