Snowfield arranges $2-million financing
2008-02-21 15:24 ET - News Release
Shares issued 83,153,244
SNO Close 2008-02-20 C$ 0.45
Mr. Robert Paterson reports
SNOWFIELD ANNOUNCES SUPER FLOW-THROUGH PRIVATE PLACEMENT WITH MINERALFIELDS GROUP
Snowfield Development Corp. has arranged a superflow-through private placement with Mineralfields Group. The private placement amount will be for up to $2-million, consisting of 4,444,444 flow-through units, at a price of 45 cents per flow-through unit. Each unit consists of one flow-through common share and one-half of one transferable non-flow-through share purchase warrant. Each whole warrant will be exercisable into one Common share, at a price of 90 cents, for a period of 24 months after closing. If all warrants are exercised into non-flow through common shares, the issuance of 2,222,222 common shares will yield the company $1,999,999 of non-flow-through funds.
In connection with the private placement, Limited Market Dealer Group Inc. will receive a finder's fee of 5 per cent, in the form of units and a two-year finder's fee option to purchase flow-through units equal to 8 per cent of the number of units subscribed to, at an exercise price of 45 cents per flow-through unit, with each flow-through unit consisting of a common share and a warrant exercisable at a price of 90 cents, for a period of 24 months after closing. Additionally, a separately invoiced cash due diligence fee of 3 per cent of the gross proceeds will be payable.
All shares and warrants shall have a maximum hold period of no more than four months.
The unit flow-through shares will entitle holders to a 100-per-cent Canadian exploration expense deduction, as well as 15-per-cent federal tax credit for continuing grassroots exploration on the company's Ticho diamond project, located 55 kilometres southeast of Yellowknife, NWT.
The proceeds of the private placement will be applied to further prospecting and delineation drilling of the Mud Lake kimberlite complex, currently open in three directions and identified over 34 acres to date, to expand the known kimberlite body, and for exploration drilling of numerous previously identified targets to further test the up-ice geochemical/geophysical targets located between approximately 750 metres and 1.5 km northeast of Mud Lake, at Swamp, Aspen, Pond, Sipper and Half Moon Lakes.
Additionally, during 2008, Snowfield will undertake exploration programs, which will include exploration drilling on its Wire Claim, as well as continuing prospecting, ground geophysical and ground geochemical mapping programs and diamond drilling programs over the Red No. 1 through No. 7 mineral claims, covering about 15,000 acres, and over the Hurcomb mineral claim, which form part of the Ticho project, which encompasses over 40,000 acres. |
