Iriana Resources Completion of a $3,000,050 Private Placement
Business Wire - June 06, 1997 15:43
FINANCIAL IRIANA-RESOURCES-COR IR. V%BW P%BW
VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--June 6, 1997-- Iriana Resources Corporation (TSE, VSE IR.)
Dr. Peter J. Guest reports:
IRIANA RESOURCES CORPORATION (IRIANA), is pleased to announce that it has on this day (the Closing Date) completed the previously announced (May
12, 1997 New Release) underwritten private placement (the Private Placement) of 2,069,000 special warrants (the Special Warrants) pursuant to private
placement prospectus exemptions, which have been issued at a price of $1.45 per Special Warrant for total gross proceeds of Cdn. $3,000,050.
Salman Partners Inc. (the Underwriter), has received a commission of 7.5 percent of the gross proceeds from the sale of the special warrants, paid by Iriana to the
Underwriter in cash totalling $225,003.75 on the Closing Date. In addition Iriana has issued an option entitling the Underwriter to receive 100,000 broker's
common share purchase warrants (Broker's Warrants). Each Broker's Warrant is exerciseable to acquire one common share of Iriana within 12 months of the
Closing Date at a price of $1.67 per common share.
Iriana will use its best efforts to file a prospectus, as soon as practicable after the Closing Date with the Ontario and British Columbia securities commissions and
such other securities commissions as the Underwriters may request (the Commissions), which prospectus shall qualify the issue of both the Underlying Shares and
Share Purchase Warrants on exercise of the Special Warrants and the Broker's Warrants on exercise of the Underwriter's option. Iriana will also use its best efforts
to obtain final receipts for the prospectus within 90 days of the Closing Date or such later date as may be mutually agreed between Iriana and the Underwriter (the
Qualification Deadline).
The gross proceeds of the Private Placement have been placed in escrow with a trustee, with the proceeds to be released to Iriana by the third business day after
the day a receipt for a final prospectus is received from the Commissions (the Clearance Date). If the Clearance Date does not occur on or before the Qualification
Deadline, each holder of Special Warrants shall have a period of seven business days following the Qualification Deadline to exercise a right of retraction and
require the Company to redeem any or all of the Special Warrants then held by such holder for the purchase price thereof plus accrued interest. Thereafter, each
holder of Special Warrants (other than insiders of Iriana) that has not exercised its right of retraction will, on exercise or deemed exercise of each Special Warrant
held by it, receive 1.1 Underlying Shares and 1.1 Share Purchase Warrants.
The net proceeds of the Private Placement will be used to fund on-going exploration and development of Iriana's existing properties, acquisition of new properties
and for general corporate purposes. Iriana holds interests in a substantial portfolio of mineral properties of approximately 6.7 million hectares located in the province
of Irian Jaya, Indonesia. Joint venture partners include Barrick Gold Corporation, Battle Mountain Gold Company and Cyprus Amax Minerals Company.
On behalf of the Board,
Peter J. Guest, (D.Eng.), President, C.E.O. and a director
The Toronto Stock Exchange and the Vancouver Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents
of this news release.
CONTACT: Iriana Resources Corporation
Rose E. Moon, 604/608-1633
24 hour recorded shareholders' update at
(604) 608-1633 extension 240 |
