Newmac Resources Inc. (TSX-V: NER) has negotiated, subject to acceptance by the TSX Venture Exchange, a private placement of up to $500,000 with certain placees.
These funds will be raised by the Company issuing 400,000 Flow-Through common shares at a price of $0.50 per flow through common share, and 600,000 Non Flow Through Units (the “ NFT Units”) at a price of $0.50 per NFT Unit, each NFT Unit consisting of one non flow-through common share and half a non-transferable share purchase warrant, each full warrant entitling the holder thereof to purchase one additional non flow-through common share, exercisable for a period of one year from the date of issuance at a price of $0.62 per share.
Proceeds of $200,000 raised from the flow through portion of the private placement will be used to explore the company’s properties located in British Columbia. This exploration work will qualify as Canadian Exploration Expense for the purposes of the Income Tax Act (Canada), which will then be renounced by the Company to the placees.
The balance of $300,000 will be used for general working capital purposes.
ON BEHALF OF THE BOARD
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.
For Further Information Contact David Hjerpe, President at: (604) 461-7211