Cavan Announces Closing of Previously Announced Non-Brokered Private Placement
August 04 2011 - 9:13PM
Marketwired
Cavan Ventures Inc. ("Cavan" or the "Company") (TSX VENTURE: CVN)
announced today that it has closed its previously announced
non-brokered private placement (the "Financing") placing 1,110,000
units ("Units") at a price of $0.125 per Unit (the "Unit Private
Placement") and 2,500,000 flow-through units ("Flow-Through Units")
at $0.15 per Flow-Through Unit (the "Flow-Through Private
Placement") for aggregate gross proceeds of approximately $500,000.
Each Unit consisted of one common share of the Company and one-half
non-transferable common share purchase warrant of the Company. Each
whole warrant acquired in the Unit Private Placement entitles the
holder thereof to purchase one common share of the Company for a
period of eighteen months following closing at an exercise price of
$0.18. Each Flow-Through Unit consisted of one common share to be
issued as a "flow-through share" for the purposes of the Income Tax
Act (Canada), and one-half common share purchase warrant. Each
whole warrant acquired in the Flow-Through Private Placement
entitles the holder thereof to purchase one common share of the
Company for a period of eighteen months following closing at an
exercise price of $0.20. The securities issued under the Financing
are subject to a statutory hold period which will expire four
months and one day from the closing date in accordance with the
rules and policies of the TSX Venture Exchange (the "Exchange") and
applicable Canadian securities laws and such other further
restrictions as may be applicable.
The Company engaged finders in connection with the sale of the
Units and the Flow-Through Units. Finders engaged by the Company
received a cash commission equal to 8 per cent of the gross
proceeds raised from the sale of Units and the Flow-Through Units
placed by them, and non-transferable compensation warrants to
purchase a number of common shares equal to 8 per cent of the Units
and Flow-Through Units placed by them as part of the Financing. The
compensation warrants are exercisable for a period of 24 months
from the date of closing of the Financing and have an exercise
price of $0.18.
The Financing and the payment of finders' fees in connection
with the Financing remain subject to final Exchange approval.
The Company expects to use the net proceeds from the sale of the
Units in connection with mineral exploration activities, including
the exploration and development of the previously announced Crown
King Silver Project in Arizona, which remains subject to Exchange
approval, and for working capital and general corporate purposes.
The net proceeds of the Flow-Through Units will be used in
connection with exploration activities on the Company's mineral
properties located in Canada.
Cavan is considering completing a further tranche of the
Financing at such time that it considers appropriate depending upon
market conditions. Any further closing will be subject to the
receipt of Exchange approval.
About Cavan
Cavan Ventures Inc. is a Vancouver based TSX Venture
Exchange-listed junior mining company with acquisitions in Canada
and Arizona, USA. The Company's vision is to become a globally
diversified resource company with strong focuses in gold, silver,
and rare earth elements. Cavan strives to become a mid-tier
producer through the acquisition and development of domestic and
international mining properties.
On behalf of the Board of Directors
Andrew Mah, President & Director
This news release contains certain forward-looking statements
that reflect the current views and/or expectations of Cavan with
respect to its performance, business and future events. Such
statements are subject to a number of risks, uncertainties and
assumptions. Actual results and events may vary significantly.
Neither the 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: Cavan Ventures Inc. Andrew Mah President &
Director (604) 783-5328 (cell) or (604) 288-2756 1 (877) 621-4920
(FAX) andrewm@cavanventures.com Cavan Ventures Inc. Boris Ziger
Corporate Communications (416) 821-4869 1 (877) 621-4920 (FAX)
borisz@cavanventures.com www.cavanventures.com