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CALGARY, Feb. 24 /CNW/ - Boxxer Gold Corp. (TSX-V:BXX) is pleased to provide an update on corporate activities relating to the Company's exploration and investor relations activities. Highlights are as follows:
Highlights:
a) 17.0 million unit private placement to fund a diamond drilling
program on the Boss project and working capital,
b) Completion of a 1,707,400 unit private placement, and
c) CHF has been retained to provide investor relations and market-making
activities.
Boxxer Announces 17,000,000 Unit Private Placement
Boxxer today announced its intention to issue 17,000,000 Units priced at $0.03 per Unit to raise gross proceeds of $510,000. Each Unit will consist of one common share in the share capital of Boxxer ("Common Share") and one-half of a Common Share purchase warrant ("Warrant"). Each whole Warrant shall be exercisable for 18 months from the date of issuance into one Common Share at a price of $0.10 per Common Share. The issuance of these Units is subject to regulatory approval. A finder's fee may be payable in relation to the proposed private placement in line with the policies of the TSX Venture Exchange.
Boxxer will use the proceeds to fund a preliminary drilling exploration program on its Boss property in southern Nevada, and for general working capital purposes.
Private Placement Closed
Boxxer has closed a 1,707,400 Unit private placement with two directors and one insider at $0.035 per Unit, as was previously announced on February 5, 2009, for gross proceeds of $59,759. Each Unit consisted of one common share and one-half of a common share purchase warrant. Each whole warrant shall be exercisable for 18 months from the date of issuance into one common share at a price of $0.10 per common share. Proceeds from this private placement will be used for general working capital.
Investor Relations
Subject to TSX Venture Exchange acceptance, Boxxer has retained the services of CHF Investor Relations ("CHF"). CHF is Canada's only Investor Relations (IR) firm whose management team's combined experience possesses more than 80 years covering brokerage, trading, financial analysis, and investment sales, over and above their work in IR.
Boxxer's President & CEO, Elmer B. Stewart, commented, "We anticipate significant progress to be made in 2009 so we have engaged CHF to manage our Investor Relations program to ensure that we effectively communicate with our shareholders and achieve our IR goals to broaden our base of recognition in the investment community."
CHF will provide investor relations and market-making services for an initial period of twelve months. In the absence of written termination notice by either party effective February 23, 2010, IR service shall continue thereafter on an open-ended basis whereby cancellation by either party requires three (3) months notice in writing. CHF will be paid a monthly fee up to $6,000 plus allowable disbursements. Additionally, subject to regulatory approval, Boxxer Gold has granted incentive stock options to CHF in the amount of 750,000 options at an exercise price of $0.10 per share expiring on the earlier of either February 22, 2011, or upon 30 days after the termination of the contract. Pursuant to the rules of the TSX Venture Exchange, the options are subject to a vesting schedule whereby 25% vest at intervals of three months following the date of grant.
CHF's Market Liquidity Program for Boxxer Gold, more commonly referred to as market-making, will be conducted through CHF's Calgary office. The market-making activity will be undertaken by CHF through a registered broker in compliance with the guidelines established by the TSX Venture Exchange Policy 3.4 and other relevant policies.
CHF does not currently own any shares of Boxxer Gold Corp.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
%SEDAR: 00019646E