Commerce Resources closes $4.51-million first tranche
2007-06-26 13:58 ET - News Release
Mr. David Hodge reports
COMMERCE RESOURCES CORP. RECEIVES TSX VENTURE EXCHANGE APPROVAL FOR FIRST TRANCHE OF PRIVATE PLACEMENT
Commerce Resources Corp. has closed the first tranche of its private placement of up to a total of 12.5 million units at a price of $1.20 per unit.
A total of 3,761,003 units are in the process of being issued to 23 investors in this tranche, raising initial proceeds of $4,513,203. Each unit consists of one common share and one share purchase warrant, which will entitle the holder to purchase one common share of the company at a price of $1.50 per share until June 26, 2009. The common shares comprising the units will bear a four-month hold period expiring Oct. 27, 2007. Finders' fees totalling $8,500 and 210,833 common shares are being paid in relation to the private placement.
Commerce Resources has now received commitments for the portion of the private placement that was the company's stated goal, as announced in Stockwatch on June 13, 2007. The portion that is being raised by Shoreline Pacific LLC is in process and the company is confident that it will be successful in closing its institutional portion shortly.
Proceeds from the private placement will finance the company's continuing exploration and development on the 100-per-cent-owned Blue River tantalum/niobium project, the exploration of the recently acquired Eldor carbonatite in Quebec, and for general working capital.
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