To All
Guess the following release answers my previous question on the cross:
$3.675 million private placement
Abacus Minerals Corporation AMC
Shares issued 17,815,405 Feb 25 close $1.06
Wed 26 Feb 97 News Release
Mr Steve Todoruk reports
The company has entered into a private placement to raise gross proceeds of
$3,675,000. Salman Partners will act as its agent in the private placement
of up to 3,500,000 special warrants at $1.05. Teck Corp will subscribe for
500,000 special warrants to maintain its 15% ownership in Abacus. Each
special warrant is exercisable at the option of the holder without any
additional payment into one share and one warrant at any time for one year.
Each warrant is exercisable, at the holder's option, at $1.30 to acquire
one share. The company has agreed to pay the agent a commission of 8.5%.
The company has agreed to use its best efforts to qualify the issuance of
shares on conversion of the special warrants by filing a prospectus in all
provinces designated by the agent (BC and Ontario) and obtaining receipts
within 120 days of the closing of the private placement. In the event the
prospectus is receipted by the deadline, the special warrant holders will
receive an additional 1.1 shares and one warrant.
Twenty five per cent of the funds will be received upon closing of the
private placement of special warrants which will be paid to the company and
the balance will be held in escrow, with interest earned for Abacus's
account, which funds will be released within three business days after
receiving final receipts for the prospectus. If the company fails to obtain
receipts for the prospectus within 120 days of the closing of the private
placement, it will be under a continuing obligation to use its best efforts
to clear a prospectus relating to the issuance of shares for up to one year
after the closing of the private placement after which the funds will be
released to the company.
Upon closing of the private placements, Abacus will have approximately $5.5
million in the treasury, of which $4.0 million will be used for the
continuing development of the company's Niblack project in southeast
Alaska, where the primary focus of drilling is centred at Lookout Mountain.
A recent drill indicated resource of 1,800,000 tons grading 0.117 oz/t
gold, 1.37 oz/t silver, 1.50% copper, and 2.64% zinc has been announced.
The balance is to be used for working capital and for further property
acquisitions.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
Good luck to all if anyone is lurking out there.
Leonard |
