MONTREAL, Dec. 6 /CNW/ - Stellar Pacific Ventures Inc. (the "Corporation") (TSX-V: SPX) is pleased to announce the closing of the first and second tranches of a private placement through the sale of 284 units (the "Units"), at a price of $1,500 per Unit, for total gross proceeds of $426,000. Each Unit is comprised of 8,000 flow-through common shares, 2,000 common shares and 10,000 transferable share purchase warrants (each a "Warrant" and collectively, the "Warrants"). Each Warrant entitles the holder thereof to purchase one additional common share of the Corporation at a price of $0.20 per common share for an initial 12-month period following the closing of the private placement and thereafter at a price of $0.30 for an additional 12-month period. An insider of the Corporation has subscribed to 16 Units in the second tranche.
Subject to the approval of regulatory authorities having jurisdiction on the securities of the Corporation, the Corporation agreed to pay a cash commission representing 10% of the gross proceeds and to issue non-transferable broker warrants equal to 10% of the securities issued pursuant to this private placement. Each broker warrant entitles its holder to purchase one additional common share of the Corporation at a price of $0.20 per common share for an initial 12-month period following the closing of the private placement and thereafter at a price of $0.30 for an additional 12-month period.
All the securities issued pursuant to this placement are subject to certain resale restrictions which require that the securities not be traded before March 30, 2007 and April 6, 2007.
These two tranches are part of a contemplated private placement of up to 375 Units, for total gross proceeds of up to $562,500. The proceeds from the sale of Units will be used by the Corporation to fund exploration activities and incur Canadian exploration expenditures (CEE) on the Corporation's properties located in the Province of Quebec.
Stellar Pacific Venture Inc. is a junior mining exploration corporation, the securities of which are listed on the TSX Venture Exchange whose primary objective is to develop and bring into production viable gold deposits.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
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