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CALGARY, June 26 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the "Company") (TSX VENTURE:WMK) is pleased to announce that it has completed the "bought deal" private placement financing originally announced on June 5, 2008. The syndicate of underwriters was led by Thomas Weisel Partners Canada Inc. and included Dundee Securities Corporation. Whitemud issued 2,143,000 special warrants of the Company at a price of C$7.00 per special warrant ("Special Warrant"), for aggregate gross proceeds of C$15,001,000 (the "Offering").
Each Special Warrant shall be automatically exercised for no additional consideration to acquire one common share in the capital of the Company, subject to adjustment in certain events, at 5:00 pm (Calgary time) on the earlier of (a) the third business day after the date that a receipt is issued by the principal securities regulator for a final prospectus qualifying the common shares to be issued upon the exercise of the Special Warrants and (b) the date that is 45 days following June 26, 2008 (the "Closing Date"). If the principal securities regulator has not issued a receipt for the final prospectus within 45 days of the Closing Date, the holder of each Special Warrant shall be entitled to receive 1.1 common shares in lieu of one common share upon exercise of the Special Warrant.
Whitemud plans to use the net proceeds of this financing for general corporate purposes.
The securities issued under this Offering were offered by way of private placement exemptions in certain provinces of Canada and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.
The securities offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
About Whitemud Resources
Whitemud is a Canada-based corporation that is exploiting a large kaolin deposit in southern Saskatchewan. The Company produces Whitemud(MK), a high-reactivity, cement-grade metakaolin that enhances the performance of cement used in construction and in oil and gas wells. The Company is positioned to benefit from expanding North American infrastructure needs and growing environmental pressures. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Information
This press release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact, including without limiting the generality of the foregoing, statements made regarding the intended use of proceeds of the Offering. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. The intended use of proceeds may be affected by Whitemud's ability to achieve the plant facility's design capacity, timing for delivery of commercial shipments of product and the success of the solutions made to remedy equipment failures all of which may be affected by a variety of variables and risks associated with the mining and mineral processing industry such as, loss of market, competition, ability to access sufficient debt and equity capital from internal and external sources, ability to expand in the marketplace, exploration and development plans and results, anticipated capital expenditures and financing thereof, timing of applications and approvals. As such the future plans and objectives of Whitemud are forward-looking statements that involve risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in such statements. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
For further information on Whitemud, go to www.whitemudresources.com.
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