Brazil Resources (BRI-V) closes oversubscribed financing for $6.4-million from $5 million
Dec 31, 2013 - News Release
Brazil Resources Inc. has the successful completion its previously announced non-brokered private placement of units of the company at a subscription price of 55 cents per unit. The aggregate amount of the private placement was increased to approximately $6.4-million from the initially announced amount of $5.0-million.Amir Adnani, chairman, stated: "We are very pleased to announce the closing of this oversubscribed private placement. We thank our current and new shareholders for their strong support. The proceeds of this financing will allow us to advance our long-term growth strategy, including positioning the company to take advantage of accretive opportunities in the current depressed resource markets."
In connection with the private placement, the company paid cash commission equal to 7 per cent on a portion of the gross proceeds raised from the sale of the units to certain arm's-length parties in the aggregate amount of $231,761, in accordance with the policies of the TSX Venture Exchange.
A total of 11,650,620 units were issued under the private placement, with each unit consisting of one common share and one share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share of the company at an exercise price of 75 cents at any time within 60 months from the closing date, subject to acceleration in certain circumstances in accordance with the terms of the warrant indenture governing the warrants. The company currently intends to seek listing of the warrants on the TSX Venture Exchange upon the expiry of the applicable hold period.
The units, common shares and warrants issued under the private placement are subject to a hold period expiring on May 1, 2014, in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws.
The company intends to use the net proceeds from the private placement to advance the company's Jorge and Cachoeira projects, to incur expenditures for initiatives, including the acquisition and exploration of additional mining properties, and for working capital and general corporate purposes. |
