Skyharbour Resources (SYH-V), March 18, 14 due to strong response from investors, has increased its non-brokered private placement financing to $750,000 from the initially targeted $500,000 as set out in the company's news release dated March 7, 2014. The amended financing will be completed through the issuance of up to five million units at a price of 15 cents per unit. Each unit consists of one common share and one-half of one non-transferable share purchase warrant, with each whole warrant entitling the holder to purchase one common share for a period of two years at a price of 20 cents per share.In connection with the financing, the company may pay a cash finder's fee equal to 7.0 per cent of the gross proceeds raised under the private placement and that number of non-transferable broker warrants equal to 7.0 per cent of the number of units sold. Each broker warrant shall be exercisable into one common share of the company for a period of two years at a price of 20 cents per share. All the securities issuable will be subject to a four-month hold period from the date of closing. The private placement is subject to the approval of the TSX Venture Exchange.
The company intends to utilize the proceeds of this private placement for the continued exploration of the company's uranium projects in the Athabasca basin and for general working capital purposes. Skyharbour has already met its first year work commitment of $500,000 toward the Western Athabasca Syndicate property package, including the current drill program under way at the Preston uranium project. A portion of the proceeds from this financing will go toward Skyharbour's remaining $500,000 work commitment on the project in the upcoming year.
The syndicate's 246,643-hectare Preston uranium property is the largest land package proximal to Fission Uranium Corp.'s Patterson Lake South (PLS) high-grade uranium discovery, as well as the recent discovery (Arrow prospect) made by NexGen Energy on the Rook 1 project (see NexGen's news release dated Feb. 19, 2014). The syndicate holds title to an extensive and geologically prospective property package in the southwest Athabasca basin region, including properties strategically located in all directions around the PLS and NexGen discoveries.
Investor relations agreement
Skyharbour is pleased to announce that it has retained FronTier Merchant Capital Group for investor relations services. FronTier is an experienced and reputable investor relations group with a home office in Toronto, Canada. FronTier will assist the company by increasing market awareness for Skyharbour by utilizing a number of financial market communications initiatives. The core of which will be facilitating in-person introductions for Skyharbour with institutional and retail brokers and investors in a number of cities across Canada, the United States, Europe and Australasia. FronTier has been retained for a six-month period commencing March 20, 2014, at $5,000 per month plus applicable taxes and direct expenses. The agreement is subject to acceptance of the TSX Venture Exchange.
Amended Red Lake property deals
Skyharbour also announces that it has amended the sale of two of its properties in the Red Lake district to Cypress Development Corp. Pursuant to the company's news release dated Feb. 18, 2014, Skyharbour will not be proceeding with the sale of its 100-per-cent-owned South Bay copper-zinc project located in the Dent, Mitchell and Agnew townships in Northwestern Ontario. Furthermore, the company announces that it has amended the terms of the sale of its 20-per-cent interest in the McKenzie Island gold project to Cypress. Under the new terms, in consideration for the 20-per-cent interest, Cypress will pay $25,000 in cash to Skyharbour. The closing of the sale by Skyharbour is subject to standard conditions, including regulatory and TSX Venture Exchange approval. |
