New Dimension Announces Flow-Through Financing
December 07 2010 - 1:03PM
Marketwired
New Dimension Resources Ltd. (TSX VENTURE: NDR) (the "Company" or
"New Dimension") announces that it intends to complete a
non-brokered private placement of up to 2,100,000 flow-through
units (the "Units") at a price of $0.24 per Unit, for aggregate
gross proceeds of up to $504,000.
Each Unit shall be comprised of one flow-through common share
and one-half of one non-flow-through common share purchase warrant.
Each full warrant will entitle the holder to acquire one
non-flow-through common share of New Dimension at a price of $0.40
for a period of 12 months immediately following the closing date
(the "Warrants"). If over a period of 10 consecutive trading days
between the date that is four months following the date of issue of
the Warrants and the expiry of the Warrant, the closing price of
the common shares on the TSX Venture Exchange or on such other
stock exchange on which the common shares are listed exceeds $0.75,
the Company may accelerate the expiry date of the Warrants by
giving notice to the holders thereof and, in such case, the
Warrants will expire on the 30th day after the date on which such
notice is given by the Company unless exercised by the holders
prior to such date.
New Dimension will pay a finders' fee equal to 7% of the gross
proceeds from the sale of Units in respect of purchasers introduced
to the Company by the Finder. The finders' fee shall be paid, at
the election of the Company, in cash or by the issuance of common
shares equal in value to 7% of the Units sold under the
offering.
The Company intends to use the proceeds from the financing of
the flow-through shares to incur Canadian Exploration Expenses
("CEE") within the meaning of the Income Tax Act (Canada) ("ITA")
on its Canadian mineral properties, and particularly on the
recently optioned Gild Property. The Company will use its best
efforts to ensure that such CEE qualifies as "flow-through mining
expenditures" for the purpose of the ITA. For funds received by the
Company on or before December 22, 2010, the Company intends to
renounce CEE in favour of the purchasers of the Units as of
December 31, 2010.
The Units will be offered and sold by way of private placement
exemptions in all provinces and jurisdictions of Canada, other than
Quebec, and into jurisdictions outside of Canada and the US.
These securities have not been and will not be registered under
the United States Securities Act of 1933, as amended and may not be
offered or sold in the United States or to U.S. persons (as defined
in Regulation S under the U.S. Securities Act) absent registration
or an applicable exemption from registration requirements.
This private placement offering is subject to, among other
things, receipt by New Dimension of all necessary regulatory
approvals, including the approval of the TSX Venture Exchange, and
a hold period of four months for all issued securities.
About New Dimension Resources
New Dimension is engaged in the acquisition, exploration and
development of quality mineral resource properties throughout the
Americas with a focus on potentially significant bulk tonnage gold
and silver deposits. The Company's exploration activities are
presently focused on its Cenepa gold project, which covers one of
the most attractive geological terrains within the highly
prospective Cordillera del Condor mineral belt in northern Peru and
southern Ecuador
(http://media3.marketwire.com/docs/ndr-cenepa.jpg). This belt is
host to Kinross Gold's FDN deposit, a NI 43-101 compliant Inferred
Mineral Resource consisting of 58.9 million tonnes grading 7.2 g/t
gold and 11.8 g/t silver and containing 13.7 million ounces of gold
and 22.4 million ounces of silver, respectively.
New Dimension also has an option to earn a 100% interest in
Strategic Metals' Gild gold property within a geological belt that
the Company & Strategic Metals believes has the same
characteristics as recent discoveries by ATAC Resources Ltd. in the
Yukon (http://media3.marketwire.com/docs/ndr-gild.pdf). Drilling on
the ATAC Property has returned significant gold values, as
demonstrated by announced intercepts of 9.25 g/t gold over 31.1
metres and 24.07 g/t gold over 28.4 metres from over 25,00 metres
of diamond drilling in excess of 130 holes. An initial exploration
program is scheduled to be carried out by the Company on the Gild
Property as soon as spring weather conditions allow. Subject to
favourable results from this exploration program and the receipt of
all necessary permits, a drill program could be carried out in the
fall of 2011.
ON BEHALF OF THE BOARD
NEW DIMENSION RESOURCES LTD.
Fred G. Hewett, P.Eng., President & CEO
This news release may contain forward looking statements which
are not historical facts, such as ore reserve estimates,
anticipated production or results, sales, revenues, costs, or
discussions of goals and exploration results, and involves a number
of risks and uncertainties that could cause actual results to
differ materially from those projected. These risks and
uncertainties include, but are not limited to, metal price
volatility, volatility of metals production, project development,
ore reserve estimates, future anticipated reserves and cost
engineering estimate risks, geological factors and exploration
results. See New Dimension's filings for a more detailed discussion
of factors that may impact expected results.
This news release does not constitute an offer to sell or
solicitation of an offer to sell any securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (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 unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
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 news release.
Contacts: New Dimension Resources Ltd. Fred Hewett (604)
687-7545 or (888) 338-2200 New Dimension Resources Ltd. Chris
Curran (604) 687-7545 or (888) 338-2200 (604) 689-5041 (FAX)
info@northair.com www.newdimensionresources.com
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