Canadian Silver Hunter Inc. Closes Initial Public Offering, Raising Total Gross Proceeds of $2,500,000
29 Juli 2011 - 12:10AM
Marketwired
Canadian Silver Hunter Inc. (TSX VENTURE: AGH) (the "Corporation")
is pleased to announce that today it has completed an Initial
Public Offering (the "Offering") and that its common shares are
expected to commence trading on the TSX Venture Exchange ("TSXV")
under the symbol "AGH" on or about Wednesday, August 3, 2011. The
offering raised total gross proceeds of $2,500,000 through the
Corporation's agent, All Group Financial Services Inc. (the
"Agent").
On July 14, 2011, the Corporation filed a final prospectus in
the provinces of Alberta, British Columbia and Ontario, and had
earlier received conditional approval to list the Corporation's
common shares on the TSXV. A copy of the Corporation's prospectus
can be viewed on SEDAR (www.sedar.com).
Pursuant to the Offering, the Corporation raised total gross
proceeds of $2,500,000 through the issuance of 10,000,000 units
(each, a "Unit") at a price of $0.25 per Unit (the "Issue Price").
Each Unit is comprised of one common share of the Corporation
(each, a "Share") and one half of a Share purchase warrant (each
whole such warrant, a "Warrant"), each Warrant entitling the holder
thereof to purchase one additional Share at a price of $0.50 per
Share at any time on or before 5:00 p.m. (Toronto time) on July 26,
2013. If the closing price of the Shares on the TSXV is greater
than $0.60 per Share for a period of 20 consecutive trading days at
any time following the issuance of the Warrants, the Corporation
may accelerate the expiry date of the Warrants by issuing a press
release announcing the reduced warrant term, whereupon the Warrants
will expire on the 30th calendar day after the date of such press
release. A cash commission of $150,000 was paid, and 600,000
Agent's Warrants were issued to the Agent and certain sub-agents.
Each such Agent's Warrant entitles the holder to purchase one Unit
at a price of $0.25 per Unit until July 26, 2013.
5,000,000 Shares held by Principals of the Corporation, and
1,300,000 Shares held by non-Principals prior to completion of the
Offering will be held in escrow; 10% of such Shares will be
released upon the Corporation's Shares being listed on the TSXV,
and 15% every six months thereafter, subject to certain adjustment
provisions as set out in the respective escrow agreements.
The Corporation now has a total of 18,188,000 Shares issued and
outstanding, an additional 5,900,000 Shares are subject to issuance
pursuant to outstanding Warrants and Agent's Warrants, and an
additional 750,000 Shares are subject to issuance pursuant to
outstanding stock options granted as of today's date as disclosed
below, for a total of 24,838,000 Shares on a fully diluted
basis.
The net proceeds to the Corporation raised pursuant to the
Offering will be used to conduct an extensive two-phase exploration
program on the Corporation's Keeley Frontier silver project, as
well as for general working capital purposes. The Keeley Frontier
project is 100% owned by the Corporation and consists of thirteen
contiguous, patented (surveyed) mining claims covering a surface
area of 174.29 hectares in South Lorrain Township, Larder Lake
Mining Division, Ontario, and on which operating mines were once
situated that produced silver, cobalt and nickel.
The recommended two-phase exploration program on the Keeley
Frontier project will include diamond drilling, geological
surveying, and compilation work of defined targets. The proposed
two-phase budget for exploration on the Keeley Frontier project is
estimated to cost a total of approximately $1.6 million. The net
proceeds of the Offering will be used for the completion of Phase I
in the amount of approximately $600,000, and approximately $900,000
for the partial completion of Phase II, the completion of which is
expected to cost an additional $100,000.
The officers and directors of the Corporation are Jeffrey Hunter
(President, Chief Executive Officer, Secretary and a Director),
Carmelo Marrelli (Chief Financial Officer), Douglas Flett
(Director), and Robert Gordon (Director). Further to its press
release dated July 18, 2011, the Corporation also announces that
the board of directors of the Corporation have granted today to
certain officers, directors, and employees of the Corporation stock
options exercisable for an aggregate of 750,000 Shares of the
Corporation, at an exercise price of $0.25 per Share for a period
of five years from the date of grant.
Jeffrey Hunter, President and Chief Executive Officer of the
Corporation, said "I would like to thank our Board of Directors and
management team, and our agent All Group Financial Services Inc.
for all of their hard work and support. We would like to welcome
all new shareholders and look forward to developing lasting
relationships as we actively explore the Keeley Frontier silver
project."
CAUTIONARY STATEMENT:
This news release contains forward-looking information which is
not comprised of historical facts. Forward-looking information
involves risks, uncertainties and other factors that could cause
actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such
forward-looking information. Forward looking information in this
news release includes, but is not limited to, the Corporation's
objectives, goals or future plans, and the listing on the TSXV.
Factors that could cause actual results to differ materially from
such forward-looking information include, but are not limited to,
those risks set out in the Corporation's public documents filed on
SEDAR. Although the Corporation believes that the assumptions and
factors used in preparing the forward-looking information in this
news release are reasonable, undue reliance should not be placed on
such information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Corporation disclaims
any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Canadian Silver Hunter Inc. Jeffrey Hunter President
and CEO (416) 707-4230 jhunter@cshi.ca
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