Newmac Resources Inc. (TSX-V: NER) (“Newmac” or the “Company”) is pleased to announce that, further to its news release dated June 1, 2011, the Company has completed its non-brokered private placement (the “Private Placement”) of 500,000 flow-through units (the “FT Units”) at a price of $0.08 per FT Unit, for aggregate proceeds of $40,000.
Each FT Unit consists of one flow-through common share (a “Flow-Through Share”) and one non-flow-through common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one non-flow-through common share (a “Non-Flow-Through Share”) at an exercise price of $0.16 at any time and from time to time until 5 p.m. (Vancouver time) on June 3 2013.
The Flow-Through Shares will entitle the holders to a 100% CEE deduction, a 15% Federal tax credit for grass roots exploration and a 20% tax credit for exploration in British Columbia.
The Company paid Raymond James Ltd. (the “Finder”) a cash commission of $2,400 which is equal to 6% of the aggregate proceeds of the FT Units. In addition, the Company issued the Finder 50,000 non-flow-through finders options (the “Finders Warrants”) equal to 10% of the number of FT Units. Each Option entitles the Holder to purchase one unit (the “Units”) of the Company at a price of $0.10 per Unit until 5:00 pm (Vancouver time) on June3, 2013. Each Unit shall be comprised of one common share (the "Shares") of the Company as constituted on June3, 2011, and one non-transferable share purchase warrant (the "Warrants"). Each whole Warrant shall entitle the holder thereof to purchase one common share (the "Warrant Shares") of the Company as constituted on June3, 2011, at a price of $0.16 per Warrant Share until 5:00 pm (Vancouver Time) on June3, 2013.
The total of 500,000 Flow-Through Shares, 500,000 Warrants and 50,000 Finder Options issued pursuant to the Private Placement are subject to a hold period expiring October 4, 2011.
The proceeds of this Private Placement will be used to develop the Company’s holdings in British Columbia.
Respectfully submitted
ON BEHALF OF THE BOARD
“David Hjerpe”
David Hjerpe
CEO
Telephone (604) 461-7211
This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Newmac Resources Inc.’s results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof.
THE TSX VENTURE EXCHANGE DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. |