Fronteer to Subscribe for Six Million Units of East Asia Minerals
June 10 2009 - 10:30AM
Marketwired
Fronteer Development Group Inc. (TSX: FRG)(NYSE Amex: FRG)
announced today that it has agreed to subscribe for six million
units of East Asia Minerals Corporation's ("East Asia") recently
announced non-brokered private placement of 9.1 million units.
Subject to final due diligence and acceptance of the
subscription by East Asia, Fronteer will purchase 6,000,000 units
of East Asia at a price of $0.51 per unit. Each unit will be
comprised of one common share in the capital of East Asia and
one-half of one common share purchase warrant. Each whole warrant
will entitle Fronteer to acquire one common share at an exercise
price of $0.75 for a period of 2.5 years from the closing of the
private placement. As part of this private placement, Fronteer will
be granted certain access rights and will have the right to
maintain its pro rata interest in East Asia through participation
in future financings. This transaction is subject to TSX Venture
Exchange approval.
Fronteer's planned acquisition represents 9.3% of the issued and
outstanding common shares of East Asia, assuming all 9.1 million
units are issued (12.9% on a partially diluted basis). The
securities issued will be subject to a four-month hold period from
the closing of the private placement.
The acquisition of the common shares and warrants comprising the
units were made for investment purposes. Fronteer may from time to
time acquire additional securities of East Asia, dispose of some or
all of the existing or additional securities it holds or will hold,
or may continue to hold its current position.
About Fronteer
Fronteer is an exploration and development company with a track
record of making big discoveries. Fronteer has an extensive gold
project pipeline in Nevada, a 40% interest in three gold and
copper-gold projects in western Turkey, and 100% ownership of
Aurora Energy Resources, a private subsidiary advancing a
world-class uranium district in Labrador, Canada.
Except for the statements of historical fact contained herein,
certain information presented constitutes "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to, the potential percentage
ownership of East Asia Minerals Corporation, involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievement of Fronteer to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the results of due
diligence procedures, political stability of Indonesia and
Mongolia, risks related to international operations and joint
ventures, the actual results of current exploration activities,
conclusions of economic evaluations, uncertainty in the estimation
of ore reserves and mineral resources, changes in project
parameters as plans continue to be refined, future prices of gold,
copper and silver, environmental risks and hazards, increased
infrastructure and/or operating costs, labor and employment
matters, and government regulation and permitting requirements as
well as those factors discussed in the section entitled "Risk
Factors" in Fronteer's Annual Information form and Fronteer's
latest Form 40-F on file with the United States Securities and
Exchange Commission in Washington, D.C. Although Fronteer has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Fronteer disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Accordingly, readers should not place undue reliance on
forward-looking statements.
NEWS RELEASE 09-18
Contacts: Fronteer Development Group Inc. Mark O'Dea, Ph.D,
P.Geo President and CEO 604-632-4677 or Toll Free: 1-877-632-4677
Fronteer Development Group Inc. Richard Moritz Director, Investor
Relations 604-632-4677 or Toll Free: 1-877-632-4677 Fronteer
Development Group Inc. Glen Edwards Director, Communications
604-632-4677 or Toll Free: 1-877-632-4677 info@fronteergroup.com
www.fronteergroup.com
Fronteer Gold Inc. Common Stock (Canada) (AMEX:FRG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fronteer Gold Inc. Common Stock (Canada) (AMEX:FRG)
Historical Stock Chart
From Jul 2023 to Jul 2024