James Bay Resources (JBR-V halted) July 28, '14 has raised gross proceeds of $3,810,670 by way of a non-brokered private placement of 3,810,670 units at a price of $1 per unit, being the third and final tranche of its financing previously announced in its press release dated Dec. 23, 2013. The second tranche of the financing closed on June 4, 2014. In the course of all three tranches of the private placement, James Bay issued a total of 6,211,094 units for total gross proceeds of $6,211,094.
Each unit comprises one common share in the capital of James Bay and one common share purchase warrant. Each warrant comprising part of the units is exercisable for a common shares at a price of $1.25 for 36 months from the date of issuance.
On June 26, 2014, the company announced that, as a result of making certain introductions and helping to arrange for the financing of an indigenous oil and gas company in Nigeria, James Bay, through its wholly owned subsidiary James Bay Energy Nigeria Ltd. (JBENL), is the owner of a minority interest in such company (the indigenous company) and that the indigenous company has entered into an agreement to acquire a material interest in a substantial oil and gas property in Nigeria. Approximately $240,000 of the proceeds from the offering will be used for expenses related to the project, which expenditures are required to further the foundation of the company's proposed oil and gas business in Nigeria. The balance of the proceeds will be used to finance working capital and to further enable James Bay to strengthen the foundation of its proposed oil and gas business in Nigeria.
James Bay obtained written approval from shareholders holding greater than 50 per cent of the outstanding common shares authorizing the offering. The TSX Venture Exchange's prior approval for the previously announced change of business from a mining issuer to an oil and gas issuer with interests in Nigeria has expired and the proposed change of business and related financing are both subject to prior acceptance by the TSX-V and disinterested approval by the shareholders. Closing of the offering is not contingent on completion of the proposed change of business. For complete details, please also see James Bay's press releases dated Jan. 31, 2014, and June 26, 2014.
In connection with the offering, the company has paid to eligible persons, a cash finder's fee of a total of $228,640.20 and has issued 228,640 finder warrants equal to 6 per cent of the total number of units placed by the finders in the offering. Each finder warrant is exercisable to acquire one common share at a price of $1 per common share for 36 months from the date of issuance.
Additionally, the company announces that, further to its news release of June 4, 2014, announcing the closing of the second-tranche offering, in connection with the second-tranche offering, the company paid to eligible persons a cash finder's fee of a total of $28,200 and issued 28,200 finder warrants, equal to 6 per cent of the total number of units placed by the second-tranche finders in the second-tranche offering.
The common shares and warrants issued as units pursuant to the offering, and the finder warrants and common shares underlying the finder warrants, will be subject to a four-month regulatory hold period commencing from the date of closing. In addition, the securities comprising the units, the finder warrants and common shares underlying the finder warrants, will have a TSX-V legend restricting transfer until completion of the proposed change of business. The offering is subject to TSX-V acceptance of requisite regulatory filings. |
