/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES/
VANCOUVER, Oct. 12 /CNW/ - Full Metal Minerals Ltd. (FMM-TSX:V) is pleased to announce a bought deal private placement with a syndicate of underwriters led by Canaccord Capital Corporation ("Canaccord") and including Raymond James Ltd. (the "Underwriters") of 4,000,000 Units (the "Units") at a price of $2.50 per Unit for gross proceeds of $10,000,000 (the "Offering"). A Unit will consist of one common share and one-half of one common share purchase warrant (a "Warrant"). Each whole warrant will entitle the holder to subscribe for one additional common share at a price of $3.00 for a period of 24 months from the date of closing.
As consideration for acting as Underwriters, Canaccord and Raymond James Ltd. will be paid a commission of 7.5% of the total proceed raised upon closing and issue underwriters' warrants ("Underwriters' Warrants") equal to 10% of the Units issued pursuant to this Offering. Each Underwriters' Warrant will be exercisable to acquire one common share at $2.50 expiring 24 months after the closing date.
The Company has also granted the Underwriters an over-allotment option to increase the offering by up to 600,000 Units, exerciseable 48 hours prior to closing.
The Company may also sell on a non-brokered private placement basis up to $3,000,000 of Units having the same terms as the above.
The Company intends to use the net proceeds from the offering to advance the Company's exploration properties and for general working capital purposes.
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael Williams"
Michael Williams
President and Director
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.