Canadian Arrow Completes First Tranche of Private Placement with Investors including MineralFields Group
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TORONTO, Sept. 18 /CNW/ - Canadian Arrow Mines Limited (CRO: TSX-V) (the "Company") is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement pursuant to which it issued 5,700,000 units at a price of $0.05 per unit for gross proceeds of $285,000 and 30,900,00 flow-through shares at a price of $0.05 per share for gross proceeds of $1,545,000 (together, the "Offering").
Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant (each whole such warrant being referred to herein as a "Warrant"). Each Warrant entitles the holder thereof to purchase one common share of the Company (a "Warrant Share") for a period of 18 months following the closing at an exercise price of $0.10.
The investors acquiring securities in the Offering included the MineralFields Group. "We are very pleased to have completed this phase of the offering and to have the involvement of the MineralFields Group", said Kim Tyler, the Company's President. "This is an important milestone in the growth of the Company and we look forward to working with MineralFields Group and our other investors as we develop our properties."
In connection with the Offering the Company paid a commission to certain registered dealers in the amount of 5% of the gross proceeds. It is anticipated that the closing of the remainder of the private placement will take place on or before September 30th, 2009.
The proceeds from the private placement will be used to advance exploration on its Kenbridge nickel project, its other regional projects and to provide the Company with additional working capital.
The Company has 116,938,950 shares outstanding following the completion of the Offering.
The securities issued in connection with the Offering are subject to a four month hold period.
This press release may contain "forward-looking statements" within the meaning of the Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this press release and the Company does not intend, and does not assume, any obligation to update these forward-looking statements.