Advanced Explorations Inc. Closes Private Placement Financings for Gross Proceeds Exceeding $2,600,000admin
Friday, August 21st 2009
Advanced Explorations Inc. announce the close of its financings as press released August 13 & 17, 2009 for gross proceeds of $2,611,990. The first tranche of the financing for gross proceeds of $1,400,000 was closed on August 13th (see press release), and the second tranche (the “Second Tranche”) of 6,902,222 flow-through units (the “FT Units”) and non-flow-through units (the “NFT Units”) for gross proceeds of $1,211,990 closed Aug 20, 2009. The Second Tranche was comprised of 5,888,555 FT Units at $0.18 and 1,013,667 NFT Units at $0.15.
Each FT Unit consists of one common flow-through share and one non-transferable, non-flow-through common share purchase warrant with a term of 12 months from the closing date of the Offering. The holder of warrants forming part of the FT Units shall be entitled to convert each whole warrant to a common share of the Company at an exercise price of $0.25 for 12 months following the closing of the Offering.
Each NFT Unit consists of one non flow-through common share and one non-transferable common share purchase warrant with a term of twenty-four months from the closing date of the Offering. The holder of warrants forming part of the NFT Units shall be entitled to convert each whole warrant to one common share of the Company at an exercise price of $0.20 in the first twelve months after the date issuance of the warrants and $0.30 thereafter until the expiry date.
In connection with this second tranche of the financing, the Company paid finder’s fees amounting to a total of $90,007.20 in cash commission and 325,027 in broker’s options. As part of the finder’s fee payable by the Company, Sandfire Securities Inc. received a cash commission of $84,007.20 and 297,250 in broker’s options. Finder’s fees of $6,000 in cash and 27,777 broker’s options were also paid to Limited Market Dealer Inc. Each broker’s option will entitle the holder to purchase one unit for a period of one year from the date of issuance of the broker’s option at an exercise price of $0.18 per unit. Each unit shall consist of one non-flow-through common share in the capital stock of the Company and one common share purchase warrant, each full share purchase warrant entitling the holder to purchase one non-flow-through common share for a period of one year from the date of issuance of the broker’s option, exercisable at a price of $0.25 per common share.
All shares as part of the FT Units and NFT Units and pursuant to the exercise of the warrants and broker’s options are subject to a hold period expiring December 21, 2009.
The gross proceeds raised from the flow-through funds will be used for exploration expenditures in the Company’s Nunavut Roche Bay Magnetite Project, which will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2009 taxation year.