Newmac Resources Inc. has negotiated, subject to acceptance by the TSX Venture Exchange, a private placement of up to $600,000 with certain placees.
These funds will be raised by the company issuing:
- 2.5 million flow-through units at a price of 12 cents per FT unit, each FT unit consisting of one flow-through common share and one transferable share purchase warrant, each warrant entitling the holder thereof to purchase one additional non-flow-through common share, exercisable for a period of two years from the date of issuance at a price of 20 cents per share;
- Three million non-flow-through units at a price of 10 cents per NFT unit, each NFT unit consisting of one non-flow-through common share and one transferable share purchase warrant, each warrant entitling the holder thereof to purchase one additional non-flow-through common share, exercisable for a period of two years from the date of issuance at a price of 20 cents per share.
Proceeds from the FT unit private placement will be used to explore the company's properties located in British Columbia. This exploration work will qualify as Canadian exploration expense for the purposes of the Income Tax Act (Canada), which will then be renounced by the company to the placees.
The remaining proceeds will be used for general working capital purposes. A finder's fee will be paid on a portion of the proceeds of this private placement. There can be no assurance that the private placement will be completed as proposed or at all, and it is subject to all applicable regulatory approvals.
We seek Safe Harbor.
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