Brilliant Mining Announces $27.7 Million Transaction
01 Dezember 2010 - 2:30PM
Marketwired
Brilliant Mining Corp. (TSX VENTURE: BLT) (the "Company" or
"Brilliant") is pleased to announce that it has entered into a
Memorandum of Understanding ("MOU") with Salida Capital L.P.
("Salida"), whereby the Company will complete a private placement
with a number of parties, including Salida, in conjunction with the
acquisition of Ivory Resources Inc. ("Ivory"), a private company
which holds the rights to carry out an airborne geophysical survey
in several west African countries and certain preferential rights
to acquire mineral interests based on the results of the survey.
The proposed acquisition and placement transaction and related
payments in aggregate will require the issuance of 101,851,851
common shares at a deemed value of $0.27 and cash payments of
$225,000 for total consideration of $27,725,000. Units issued
pursuant to the transaction include 92,592,592 warrants in
aggregate, exercisable at a price of $0.45 within two years, for
proceeds of approximately $41.7 million.
Proceeds of the private placement of up to $19 million are to be
used principally to fund the airborne survey and for general
working capital and business initiatives. The price per unit
(consisting of one share and one warrant) is $0.27 with a warrant
exercisable at a price of $0.45 per share within two years. The
placement may include Insiders of the Company.
Pursuant to the MOU, the Company intends to acquire Ivory in
exchange for $4 million in units of Brilliant at a deemed price of
$0.27 per unit, based on cash invested in Ivory by Salida and
others. In addition, the Company has agreed to issue $2 million in
units at $0.27 per unit to Salida as to 75% and to Lionhart Trading
Company Ltd. as to 25% as part of the acquisition transaction of
Ivory.
The Company has agreed to pay to Sillenger Exploration Corp.
(OTCQB: SLGX) (OTCBB: SLGX) shares in the Company equal to a value
of $2 million and based on a price of $0.27 per share which shares
will be subject to escrow provisions. In addition, the Company has
agreed to issue shares of the Company valued at $200,000, which
shares shall be subject to a two-year escrow, to an individual for
his efforts in assisting in putting the transaction together.
Cornerstone Capital Partners L.P. will be entitled to a finder's
fee in the amount of $150,000 cash and $300,000 payable in shares
of the Company at $0.27 per share and such shares will be subject
to a two-year escrow period. The Company will also pay a finder's
fee of $75,000 cash to another individual.
Each party is to complete its due diligence on the project and a
formal agreement is to be entered into with respect to the various
matters involved in the transaction in the near future.
The Company has agreed to advance $1.5 million as an initial
payment towards the costs of commencing the survey to be carried
out by an independent geophysical contractor. The Company currently
has approximately $4 million in cash and approximately $7 million
in cash equivalents and marketable securities.
The various agreements are subject to regulatory and shareholder
approval.
About Brilliant Mining Corp.
Brilliant Mining Corp. is a two-time TSX-Venture Top 50 award
winning resource Company in search of undervalued resource
opportunities. Brilliant's internationally experienced technical
team and Board of Directors aim to leverage their broad range of
expertise to acquire and develop high quality, advanced stage
mineral projects.
On behalf of the Board of Directors
John Williamson, P. Geol., CEO, President & Director
Brilliant Mining Corp.
For further information about Brilliant Mining Corp. or this
news release, please visit our website www.brilliantmining.com.
Brilliant Mining Corp. is a member of the Discovery Group of
Companies, for more information on the group visit
www.discoveryexp.com.
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: Brilliant Mining Corp. Brian Budd Director of
Corporate Development 604-646-4525 or Toll Free: 1-888-331-2269
info@brilliantmining.com www.brilliantmining.com
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