Etruscan Raises $26 Million
April 8, 1997, Dartmouth, Nova Scotia
Etruscan Enterprises Ltd. reported today that it had reached an agreement with Goodman & Company Ltd. and Robertson, Stephens & Company to complete a private placement of 4,000,000 special warrants of Etruscan at a price of $6.50 per special warrant for aggregate proceeds to Etruscan of Cdn. $26,000,000. Goodman & Company Ltd and Robertson, Stephens & Company are purchasing for accounts managed by these companies. It is anticipated that the closing of the private placement will occur on or about April 21, 1997.
Approximately $16,000,000 of the proceeds of the special warrant private placement will be used by Etruscan to fund continued exploration on the portion of the Tiawa Concession in Niger, West Africa outside the area of the concession optioned to Placer Dome. The remainder of the proceeds will be used to acquire and explore other properties in Africa and for general corporate purposes.
The special warrants will be exercisable, without further payment, into one common share and one share purchase warrant of Etruscan on the first business day following the date Etruscan receives a receipt for a final prospectus in Ontario. Each share warrant will entitle the holder to purchase one common share of Etruscan for a two year period after closing. The warrants will be exercisable at a price of $7.50 per common share if exercised in the first year of issuance and $8.475 per common share if exercised in the second year of issuance.
Etruscan has agreed to use its reasonable best efforts to file a preliminary prospectus in Ontario within 30 days of closing of the special warrant private placement in order to qualify for public distribution the common shares and warrants to be issued as a result of the special warrant private placement. If within 120 days of closing of the special warrant private placement a receipt for a final prospectus has not been received in Ontario, the special warrants will automatically be convertible into 1.1 common shares and 1.1 warrants of Etruscan. If within 220 days of closing the special warrant private placement a receipt for a final prospectus has not been received, the special warrants will automatically be convertible into 1.21 common shares and 1.21 warrants of Etruscan.
One half of the gross proceeds of the special warrant private placement will be held in escrow until the fifth business day following the issuance of a receipt for a final prospectus. If a receipt for the final prospectus qualifying the issuance is not issued
within 120 days of the closing date of the private placement each holder of special warrants will be entitled to exercise a right of retraction in respect of half of the special warrants held by such holder. If the holder exercises the retraction right, he will receive the aggregate purchase price paid in respect of such special warrants being retracted together with any interest earned while the proceeds in respect of the special warrants were held in escrow. The right of retraction expires 10 business days following the date which is 220 days after the closing date.
The private placement is subject to completion of all formal documentation standard for a special warrant transaction and receipt of regulatory approval.
Etruscan Enterprises Ltd. is involved in the acquisition, exploration and development of mineral properties in North America and West Africa. Etruscan is 8% beneficially owned by NovaGold Resources Inc. which is listed on The Toronto Stock Exchange under "NRI" and 16.5% by Placer Dome Inc.
ON BEHALF OF THE BOARD OF DIRECTORS
OF ETRUSCAN ENTERPRISES LTD.
Gerald J. McConnell, President
For information contact:
Angus G. MacIsaac, Dartmouth, Nova Scotia (902) 468 9270
Pierre Besuchet, Geneva, Switzerland (22) 732 53 55
William Young, Toronto, Ontario (416) 368 0882
The Vancouver Stock Exchange has neither approved nor disapproved of the contents of this news release.
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This can be found at the Etruscan web site: etruscan.com
Regards,
Brantz |
