wolfdenresources.com
Mr. Ewan Downie reports
WOLFDEN CLOSES $3.578 MILLION FINANCING
Wolfden Resources has completed the previously announced offering of
2,242,048 Class E special warrants at a price of $1.15 per Class E special
warrant and 869,565 Class F special warrants at a price of $1.15 per Class F
special warrant for gross proceeds of $3,578,355 through Canaccord Capital
Corporation, Dundee Securities Corporation, Griffiths McBurney & Partners, and
Haywood Securities Inc. (collectively the agents).
Each Class E special warrant is exercisable, for no additional consideration, to
acquire one flow-through common share of Wolfden, and each Class F special
warrant is exercisable, for no additional consideration, to acquire one common
share of Wolfden provided that a receipt is issued for a final prospectus of
Wolfden which qualifies the issue of such flow-through common shares and
common shares by Nov. 11, 2002, failing which each Class E special warrant will
be exercisable, for no additional consideration, to acquire 1.1 flow-through
common shares and each Class F special warrant will be exercisable, for no
additional consideration, to acquire 1.1 common shares.
The agents received for their services in connection with the offering a total fee of
$250,485 and a total of 248,928 agents' special warrants. Each agents' special
warrant is exercisable, for no additional consideration, to acquire one agents'
warrant. Each agents' warrant entitles the holder thereof to purchase one common
share of Wolfden at a price of $1.15 until Feb. 12, 2004.
The special warrants issued by the corporation in connection with the offering and
the securities issuable upon the exercise thereof are subject to a hold period,
which expires on the earlier of Aug. 13, 2003, and the date on which a decision
document is issued evidencing the issue of receipts by applicable regulatory
authorities for a prospectus qualifying the distribution of such securities issuable
upon the exercise of such special warrants.
The proceeds from the private placement will be used primarily to finance the
exploration of the Wolfden's High Lake property and for general working capital.
Of the net proceeds of the offering, approximately $750,000 is being held in
escrow and will be released to Wolfden upon the earlier of the exercise or transfer
of the Class F special warrants. |
