The latest news release :Attention Business Editors:
DARNLEY BAY RESOURCES LIMITED - PRIVATE PLACEMENT FINANCING
TORONTO, April 15 /CNW/ - The Company has agreed to issue 294,118 special
warrants to Endstone Trust SA, of Switzerland (the ''Subscriber'') at $0.85
per special warrant, for a total subscription of $250,000.
Each special warrant is exchangeable, without further payment, for one
common share and one Class D Warrant exercisable to March 31, 1999. Each Class
D Warrant has the right to buy one common share at $1.10.
The special warrants are exchangeable until 5:00 pm (Canadian eastern
standard time) on the earlier of: (a) the date that is five business days
after the relevant securities regulatory authority issues a receipt for a
prospectus qualifying the common shares and Class D Warrants for distribution
and (b) September 30, 1998 (or such other date as the Subscriber and the
Company by agreement may select). If the Subscriber does not exercise its
right to exchange before that time, it will be deemed to do so immediately
before that time.
If a final receipt for the prospectus is not issued by September 30, 1998
(or such other date as the Subscriber and the Company by agreement may
select), the Subscriber will receive, without further payment, for each
special warrant, and instead of the common shares and Class D Warrants, the
lesser of the number of common shares permitted by the Vancouver Stock
Exchange and the number of common shares that is one and one-half times the
number of special warrants.
The funds will not be escrowed after the issue of the special warrants.
The proceeds of the issue will be used for working capital and to
continue the Company's exploration of the Darnley Bay anomaly.
The agreement is subject to the approval of the Vancouver Stock Exchange.
-0- 04/15/98
For further information: Leon F. La Prairie, President, (416) 862-7885 |
