Business
Silver Spruce Resources Inc. Announces Private placement of up to $2,000,000 flow through units and $500,000 Non flow through units
Silver Spruce Resources Inc. Announces Private placement of up to $2,000,000 flow through units a...
About this update from Silver Spruce Resources Inc.
[{"type":"text","content":"\nSilver Spruce Resources Inc. Announces Private placement of up to $2,000,000 flow through units and $500,000 Non flow through units\n\n\n Dec. 7, 2010 (TheNewswire.ca) -- Bridgewater, Nova Scotia - December 7, 2010 - Silver Spruce Resources Inc. (TSXV: SSE)(\"Silver Spruce\") is pleased to announce it is arranging a non-brokered private placement to raise gross proceeds of up to $2,500,000 (the \"Offering\").The Offering shall consist of the issuance of a combination of flow-through (\"FT Units\") and non-flow-through units (\"NFT Units\") of Silver Spruce. The FT Units are offered at a price of $0.17 per FT Unit, consisting of one flow-through common share and one half of a common share purchase warrant, with each whole warrant exercisable at a price of $0.20 per common share. The maximum amount of monies to be raised with the issuance of 11,764,705 FT Units is $2,000,000. The warrants shall expire two years after the closing of the Offering if unexercised. The NFT Units are offered at a price of $0.15 per NFT Unit, consisting of one non-flow-through common share and one common share purchase warrant, with each whole warrant exercisable at a price of $0.20 per common shares. The maximum amount of monies to be raised with the issuance of 3,333,333 NFT Units is $500,000. The warrants shall expire two years after the closing of the Offering if unexercised.A finder's fee will be paid on the Offering of 7% cash and 7% finder's warrants. Each whole finder's warrant will entitle the holder to purchase one non-flow-through common share of Silver Spruce at an exercise price of $0.20 for a period of 2 years following the closing of the Offering.The gross proceeds raised from the issuance of the FT Units shall be used for general exploration expenditures on Silver Spruce's Newfoundland and Labrador projects, which shall constitute Canadian exploration expenses (as defined in the Income Tax Act (Canada)) and shall be renounced for the 2010 taxation year.The gross proceeds raised from the issuance of the NFT Units shall be used for Silver Spruce's Mexico projects and for general corporate purposes.All securities issued in connection with the Offering shall be subject to a four-month hold period in accordance with applicable securities requirements. The Offering is subject to fulfillment of the requirements of the TSX Venture Exchange.ABOU...