suprise...suprise..UW announces finance.....
Please reflect all firm orders by telephone to xxxxxxxx - asap as this is a bought deal and the books may close without notice.
Dundee Securities is participating in a best efforts private placement for Underworld Resources Inc.to raise up to $14 mm by way of flow through shares and units sold to "accredited investors" in the provinces of Ontario, Alberta, BC and Yukon. A termsheet is attached with further details.
Issuer: Underworld Resources Inc. (UW: TSX-V)
Issue: 8.4 mm units + 2.4 mm Flow-Through
Size: Up to $14 mm (plus option of $1 mm in any combination)
Price: $1.25 per unit (Share + 1/2 warrant) / $1.45 per flow through share
Warrant 1/2 wt valued at 8 cents at a 30 vol and stock is trading at $1.42 per share right now
Use: CEE and general working capital
Jurisd: Ont, BC, Yukon and into the US via Reg D
Retail: 3% on both
Close: June 19, 2009
Synd: Canaccord - 60%, Axemen - 30% and Dundee - 10%
Investment Highlights
Underworld Resources (UW – TSXV) is a mineral exploration company focused on expanding its new gold discovery in the Yukon. The Company has completed a substantial amount of the Phase 1, 2009, 4,000 meter drill program at the White Gold project. The objective of this initial program was to expand the gold discoveries made by the 2008 drill program at Golden Saddle and Arc.
Assay results have been announced for three holes at the Golden Saddle zone at the White Property. These assays are a significant improvement on previously reported findings. Results are as follows:
WD09-28: 1.84 g/t Au over 102.5 meters from 105 to 207.5 meters
WD09-29: 3.89 g/t Au over 60.5 meters from 145.5 to 206.0 meters
WD09-31: 3.39 g/t Au over 104.0 meters from 100.0 to 204.0 meters
The above holes were completed in a fence of four, drilled at the Golden Saddle zone, west of hole WD08-21 that returned 3.1 g/t Au over 50.7 meters. These initial holes were located to test the continuity of mineralization and to test for extensions of mineralization to depth.
Underworld has a well seasoned management team led by Adrian Fleming, B.Sc. who has 30 years diversified experience in the mining industry, including exploration, project development and operations. Mr. Fleming has held senior positions with Placer Dome, Giant Yellowknife Mines and Golden Star.
The company currently has 27.5M shares outstanding (or 30.7M on a fully diluted basis) and a market capitalization of ~C$41M.
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