LAVAL, QC, Jan. 2 /CNW/ - Stelmine Canada Ltd. ("Stelmine" or the "Corporation") announces the closing of its initial public offering for the distribution of 1,050 series A Units ("A Units") and 300 series B Units ("B Units") for gross proceeds of $1,365,000.
The net proceeds of the offering will be used to complete exploration work on the Opinaca property and for working capital purposes.
The offering was made through Canaccord Capital Corporation ("Canaccord") under an agency agreement. In consideration of the services performed by Canaccord, the Corporation paid to Canaccord a commission equal to 10% of the gross proceeds of the financing. Canaccord also received, as additional compensation: (i) non transferable broker warrants allowing it to acquire a number of common shares of the Corporation equal to 10% of the number of the common shares of the Corporation subscribed as part of the distribution of the A and B units, that is, 546,000 common shares, which may be exercised until December 31, 2009, at a price of $0.20 per share and (ii) 300,000 common shares of the Corporation.
Stelmine obtained from the TSX Venture Exchange (the "Exchange") a conditional approval to list its common shares for trading. The final approval is conditional upon Stelmine meeting with all the Exchange's requirements. It is anticipated that the common shares of Stelmine will be listed and posted for trading on the Exchange in January 2008 under the symbol "STH".
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
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