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Press Release Source: Anaconda Gold Corporation
Anaconda Gold Corp. Increasing Financing To $2,000,000 Maximum
Thursday October 2, 3:11 pm ET
TORONTO, ONTARIO--Anaconda Gold Corp. (the "Company") is pleased to announce that, further to its press release of September 30, 2003, the maximum amount of its proposed public offering (the "Offering") has been increased from $1,750,000 to $2,000,000. The Company intends to proceed with the Offering through the sale of units at $0.25 per unit by way of a Short Form Offering Document in accordance with TSX Venture Exchange Policy 4.6. The Offering will be conducted on a commercially reasonable efforts basis and is expected to close during the latter part of October, 2003.
ADVERTISEMENT
At an offering price (the "Offering Price") of $0.25 per Unit, the Short Form Offering Document (the "Offering Document") will qualify for distribution up to 8,000,000 units (the "Units") of the Company.
5,000,000 of the Units will be flow-through units (the "Flow-Through Units") and 3,000,000 of the Units will be non-flow-through units (the "Non-Flow-Through Units"). Each Flow-Through Unit will consist of one flow-through common share in the capital of the Company (a "Flow-Through Share") and one-half of one common share purchase warrant (a "Warrant"). The Flow-Through Shares will be recognized as flow-through shares for Canadian federal income tax purposes and therefore special tax considerations will apply to the purchase of Flow-Through Units. Each Non-Flow-Through Unit will consist of one non-flow-through common share in the capital of the Company (a "Share") and one Warrant. Each Warrant will entitle the holder to acquire one additional non-flow-through common share (a "Warrant Share") at a price of $0.30 per Warrant Share for a period of 12 months from the date of issuance of the Units. The Warrants will not be transferable.
The proceeds from the Offering will fund gold exploration on the Company's project located in Canada, as well as to fund general and administrative expenses.
Canaccord Capital Corporation (the "Agent") has agreed to act as agent for the Company to offer the Units for sale on a commercially reasonable efforts basis, subject to the terms and conditions of the Agency Agreement between the Agent and the Company. The Agent will receive a cash commission of 8% of the gross proceeds of the Offering, a corporate finance fee payable in Non-Flow-Thorough Units, an administration fee payable in cash, and an Agent's Warrant to purchase up to that number of common shares as is equal to 10% of the number of Units sold pursuant to the Offering, at an exercise price of $0.30, for a period of twelve months following the Closing. The cash commission, expenses of the Offering and the administration fee will be paid from the proceeds of the Non-Flow-Through Units.
The Agent will solicit subscriptions for Units only in the provinces of Alberta and British Columbia and such other jurisdictions where the Units may lawfully be sold. The Agent reserves the right to offer selling group participation, in the normal course of the brokerage business to selling groups of other licensed brokers and investment dealers who may or may not be offered part of the commission or the Agent's Warrants. The purchasers of any Units under the Offering will be required to pay commissions at the rates charged by their brokers.
The Offering is subject to a number of conditions including the execution of formal documentation and receipt of applicable regulatory approvals.
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Contact:
Anaconda Gold Corp.
John Cook
Chairman
Phone: (416) 777-0001 ext 224
johncook@347bay.com
or
Anaconda Gold Corp.
Nick Tintor
President
Phone: (416) 777-0001 ext 227
nt.cccp@347bay.com
The TSX Venture Exchange has in no way passed upon the merits of the Offering and does not accept responsibility for the adequacy or accuracy of this release.
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Source: Anaconda Gold Corporation |
