Canada Fluorspar Announces Completion of Financing
December 16 2010 - 8:34AM
Marketwired
Canada Fluorspar Inc. (TSX VENTURE: CFI) (the "Company") is pleased
to announce that it has closed the previously announced financing
of 11,000,000 common share special warrants ("Special Warrants") at
a price of $0.50 per Special Warrant for aggregate gross proceeds
of $5,500,000 (the "Offering").
"As a result of this financing CFI is now adequately funded to
complete our current development and operating objectives,"
commented Lindsay Gorrill, President and CEO of Canada Fluorspar
Inc. "With these funds in place, a debt free balance sheet and a
substantially broadened shareholder base, CFI is well positioned to
engage strategic partners in meaningful discussions with respect to
the development of our world class fluorspar deposit at St.
Lawrence, NL. It is important to note that we continue to be
pleased with trends in the Fluorspar markets as we are witnessing
pricing being impacted by a number of favourable trends around the
world."
Mr. Gorrill also added that, "these funds combined with the
recent additions to our management team and the support of our
board of directors provide CFI with a solid platform from which we
can make the important decisions related to the reactivation of our
fluorspar mine and mill, and financing of the project."
The Offering was completed by a syndicate of investment dealers
led by Dundee Securities Corporation, and including GMP Securities
L.P., Jennings Capital Inc. and Paradigm Capital Inc. (the
"Agents"). In consideration for their services the Agents received
a cash commission equal to 5% of the gross proceeds of the
Offering. In addition, the Corporation issued 550,000 broker
warrants (being an amount equal to 5% of the number of Special
Warrants sold under the Offering) to the Agents. Each broker
warrant entitles the holder thereof to acquire one common share
("Common Share") of the Company at a price of $0.60 until December
16, 2011.
Each Special Warrant will entitle the holder thereof to receive
one Common Share and one half of one common share purchase warrant
("Warrant") on the exercise or deemed exercise of the Special
Warrant, as applicable, subject to adjustment in certain events.
The Special Warrants will be exercisable by the holder at any time
after the closing for no additional consideration and all
unexercised Special Warrants will be deemed to be exercised on the
earlier of (a) four months and a day following the closing, and (b)
the 5th business day after a receipt is issued for a final
prospectus by the securities regulatory authorities in each of the
provinces of Canada where the Special Warrants are sold qualifying
the Common Shares and Warrants to be issued upon the exercise of
the Special Warrants, as applicable. The Company shall use its
reasonable best efforts to obtain such receipt for a final
prospectus qualifying the distribution of the Common Shares and
Warrants issuable upon the exercise of the Special Warrants by
February 14, 2011. If the principal securities regulator has not
issued a receipt for the prospectus within 60 days of the date of
closing of the Offering, the holder of each Special Warrant shall
be entitled to receive 1.1 Common Shares and 0.55 Warrants in lieu
of 1 Common Share and 0.5 Warrants upon exercise of the Special
Warrant. Until the receipt is issued for such prospectus, the
Special Warrants as well as the Common Shares and Warrants issuable
upon exercise thereof will be subject to a four month hold period
under applicable Canadian securities laws.
Each whole Warrant is exercisable into one Common Share at a
price of $0.75 per Common Share for a period of 18 months from the
date of issuance of the Warrants.
The net proceeds from the Offering will be used to develop the
Company's fluorspar deposits located in St. Lawrence, Newfoundland
and for general working capital purposes.
ABOUT CANADA FLUORSPAR INC.
The Company is a specialty mineral resource company engaged in
the development and production of fluorspar deposits at its
property located in St. Lawrence, Newfoundland, Canada, and is
moving forward to reactivate existing underground fluorspar mines,
expand an existing mill, construct a new, environmentally-sound
Tailings Management Facility and build a new deep-water marine
terminal in the outer St. Lawrence Harbor for the export of
fluorspar concentrate product.
For more information please see: www.canadafluorspar.com.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States of America. The securities have not been and will not be
registered under the United States Securities Act of 1933 (the
"U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons (as
defined in the U.S. Securities Act) unless registered under the
U.S. Securities Act and applicable state securities laws, or an
exemption from such registration is available.
Advisory Regarding Forward Looking Statements
This press release contains forward-looking statements which
include, but are not limited to: current development and operating
objectives and outlook, expectations, opinions, forecasts,
projections, guidance, the timing for obtaining a receipt for its
prospectus, or other statements that are not statements of fact.
Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it cannot give any
assurance that such expectations will prove to be correct. Results
of the Company may be affected by a variety of variables and risks
associated with mining development, such as loss of market,
volatility of commodity prices, currency fluctuations, imprecision
of reserve estimates, environmental risks, competition from other
producers, ability to access sufficient debt and equity capital
from internal and external sources, ability to generate sufficient
cash flow to meet its current and future obligations, regulatory
approvals affecting construction and mining operations; as a
consequence, actual results could differ materially from those
anticipated or implied in the forward-looking statements.
The Company's forward-looking statements are expressly qualified
in their entirety by this cautionary statement and are made as of
the date of this news release. Unless otherwise required by
applicable securities laws, the Company does not intend nor does it
undertake any obligation to update or review any forward-looking
statements to reflect subsequent information, event, results or
circumstances or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: On behalf of Canada Fluorspar Inc.: Canada Fluorspar
Inc. Lindsay Gorrill, President and CEO 1-800-823-8095
lgorrill@canadafluorspar.com www.canadafluorspar.com Spinnaker
Capital Markets Inc. Ali Mahdavi, Partner am@spinnakercmi.com
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