Greetings:
Again many thanks for V.IPT, V.CYJ & V.HUN . Still hopeful for KRA.
I have to ask if you think that V.ABB Abitibi Mining, which is next to Band Ore's property in Timmins (T.BAN has 6 drills starting Feb 10/97), in addition to other places might be a double (considering it's only .48 cents now). This press release came out yesterday. Does Canaccord play a positive or negative in this play??? Look forward to your response & weekend update.
Cheers,
Mike Perras
February 6, 1997
Symbol: A B B - VSE
#05-97
AGENCY AGREEMENT WITH CANACCORD CAPITAL CORP.
=============================================
The Company has agreed to enter into an "Estimated Fixed Price Agency
Agreement" with Canaccord Capital Corp. of Vancouver ("Canaccord"), whereby Canaccord will act as the selling agent for the sale of units of the Company ("Units") to be distributed through the facilities of the Vancouver Stock Exchange under an Exchange Offering Prospectus.
The terms of the proposed offering (the "Offering") are as follows:
ú the Offering will consist of a minimum of 1,000,000 Units (comprised of 500,000 Flow Through Units and 500,000 Non-Flow Through Units) and a maximum of 2,000,000 Units (comprised of 1,000,000 Flow Through Units and 1,000,000 Non-Flow Through Units).
ú The Flow Through Units and Non-Flow Through Units will be qualified under an Exchange Offering Prospectus for sale in the Province of British Columbia, Canada through the facilities of the Vancouver Stock Exchange
ú The Offering will take place within 90 days after acceptance of the
prospectus by regulatory authorities on a day determined by Canaccord and the Company (the "Offering Day"). The offering price per Unit (the "Offering Price") will be determined in accordance with the applicable policies of the Vancouver Stock Exchange on the day before the Offering Day, but in any case will be a minimum of $0.65 per unit or the market price on the day before the Offering Day plus 10%.
ú Each Unit will consist of one common share and one warrant (a `Series "A" Warrant'), two of which will entitle the holder to purchase an additional common share at the Offering Price for one year from the Offering Date.
ú The Flow Through Units and Non-Flow Through Units will be identical in all respects except that the common share forming part of a Flow Through Unit will qualify as a "flow through share" under the Income Tax Act (Canada). None of the shares issuable upon exercise of the Series "A" Warrants will be flow through shares.
ú Canaccord Capital Corp. will guarantee the minimum sale of 1,000,000 Units and has agreed to sell any additional Units, up to the maximum offering of 2,000,000 Units, on a best efforts basis.
ú Canaccord will receive a commission of 71/2 % plus expenses and will receive 250,000 non-transferable Agent's Warrants, each of which will entitle it to purchase one common share of the Company (which will not be a flow through share) at the Offering Price for one year from the Offering Date.
ú Canaccord will have First Right of Refusal on any future public offerings within twelve months of the completion of this offering, with the exception of the sale of securities by the Company to a Senior mining company.
ú Canaccord Capital Corp. may also earn up to and additional 100,000 Agent's Warrants or percentage thereof for the placement of any Units beyond the 1,000,000 Unit minimum up to the maximum of 2,000,000 Units, earning Canaccord a total of 350,000 Agent's Warrants.
On behalf of the Board of Directors,
ABITIBI MINING CORP.
"James Villegas"
Director
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