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TSX-V: SIR
VANCOUVER, May 16 /CNW/ - Serengeti Resources Inc. (the "Company") is pleased to announce a bought-deal private placement with a syndicate of underwriters led by Canaccord Capital Corporation (the "Underwriters") of 3,000,000 units (the "Units") at a price of $3.00 per Unit and 1,600,000 flow-through shares ("Flow-Through Shares") at a price of $3.75 per Flow-Through Share to raise a total of up to $15,000,000 (the "Offering"). A Unit will consist of one common share and one-half of one transferable common share purchase warrant (a "Warrant"). Each whole warrant will entitle the holder to subscribe for one additional common share (a "Warrant Share") at a price of $4.00 for a period of one year from the date of closing.
The Company has also granted the Underwriter an over allotment option to purchase any combination of Units and Flow-Through Shares to raise additional gross proceeds of up to $4,000,000, exercisable forty-eight hours prior to closing.
The Company may also sell on a non-brokered private placement basis up to $1,000,000 of Units having the same terms as the above.
The funds raised from the issuance of the Flow-Through Shares shall be used for general exploration expenditures which will constitute Canadian Exploration Expenditures ("CEE") on the Company's prospects located in British Columbia. Funds raised from the issuance of Units will be for general working capital.
Completion of the placement is subject to the approval of the TSX Venture Exchange.
Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. Serengeti is focused on the discovery and development of copper-gold and molybdenum deposits in British Columbia, especially in the highly prospective Quesnel Trough where it owns numerous claim blocks totaling in excess of 100,000 hectares. Additional information can be found on Serengeti's website at www.serengetiresources.com.