Southern Energy Corp press release
Armistice Resources Corp. completes financing
TSXV - TSX Venture Exchange · Natural Gas · Natural Gas Liquids · Oil · Canada
Issued and Outstanding common shares: 60,130,435
TORONTO, June 16 /CNW/ - Armistice Resources Corp. (TSX: AZ) ("Armistice" or the "Corporation") is pleased to announce that it has closed its previously announced private placement. The full subscribed private placement raised gross proceeds of $3,238,250.35 through the sale of 6,165,001 units in the capital of the Corporation (the "Units") at $0.35 per Unit and 2,701,250 flow-through common shares in the capital of the Corporation (the "FT Shares") at $0.40 per FT Share.
Each Unit is comprised of one common share of the Corporation (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable into one Common Share at an exercise price of $0.45 per Common Share for a period of 18 months from closing. The Warrant term will be subject to acceleration if, after four months and a day after closing, the closing price of the Common Shares is equal to or exceeds $0.70 for 30 consecutive trading days.
The Corporation issued 473,571 Units and 100,000 FT Shares directly to subscribers and these securities were not subject to a cash commission. D&D Securities Company ("D&D") received a cash commission equal to 7% of the gross proceeds of the remaining portion of the offering. D&D also received broker's warrants exercisable into that number of Common Shares equal to 10% of the aggregate number of Units and FT Shares sold through D&D in the offering. Each broker's warrant will be exercisable to acquire one Common Share at a price of $0.35 per share for a period of 12 months after closing.
Armistice intends to use the net proceeds of the FT Share portion of the offering for underground exploration at its McGarry project. The net proceeds of the Unit portion of the offering will be used for exploration, general corporate purposes and working capital.
Armistice is a Canadian exploration company that owns an advanced exploration underground gold project in North-eastern Ontario located on the prolific Larder Lake break. The McGarry project consists of 34 contiguous patented mining claims and licences of occupation totaling 484 hectares which adjoins the former producing Kerr Addison gold mine which produced in excess of 11 million ounces of gold. Underground drilling and bulk sampling is currently underway.
ARMISTICE RESOURCES CORP.
"Todd J. Morgan"
Todd J. Morgan
President, CEO and Chairman of the Board