Quantum Closes $6.5 Million Financing Led by MGI Securities
November 08 2010 - 3:05AM
Marketwired
Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(PINK
SHEETS: QREDF)(FRANKFURT: BR3) ("Quantum", the "Company") announces
that it has closed a private placement with MGI Securities Inc.
(the "Agent") for gross proceeds of $6,419,023.
In addition, the Company completed a non-brokered private
placement for gross proceeds of $82,538.
The combined total sales of $6,501,561 consisted of 8,337,000
flow-through units at $0.30 per unit ("FT Units"), 8,000,000 non
flow-through units at $0.25 per unit ($0.25 NFT Units"), and
6,453,100 non flow-through units at $0.31 per unit ("$0.31 NFT
Units").
"The financing, primarily from well known institutional
investors, is substantially larger than we originally contemplated
which gives us the ability to accelerate our projects both in
Saskatchewan and Elk Creek, Nebraska. We are very pleased with the
overwhelming support provided by our new investors and wish to
thank MGI Securities and John McMahon for their efforts, and also
would like to extend our thanks to Lockwood Financial Ltd. for its
assistance in securing this financing package. The closing of this
placement satisfies one of the final conditions of the TSX Venture
Exchange to grant final acceptance to the Company's proposed three
cornered amalgamation under which the Company will acquire all of
the issued and outstanding shares of 0859404 B.C. Ltd. and its
Nebraskan subsidiary Elk Creek Resources Corp. The Company intends
to seek final TSX Venture Exchange acceptance and complete the
amalgamation promptly," said Company President and CEO, Peter
Dickie.
The terms of each unit offering are as follows:
Each FT Unit consists of one flow-through share which qualifies
as a "flow-through share" pursuant to the Income Tax Act (Canada),
and one-half of one common share purchase warrant (the "$0.40 FT
Warrant"). Each full $0.40 FT Warrant will entitle the holder
thereof to purchase one additional non flow-through common share in
the capital of the Company at an exercise price of $0.40 per common
share for a period of 36 months from the closing date of the
offering.
Each $0.25 NFT Unit consists of one non flow-through common
share and one-half of one common share purchase warrant (a "$0.35
NFT Warrant"). Each full $0.35 NFT Warrant shall be exercisable
into one common share at an exercise price of $0.35 per common
share for a period of 36 months from the closing date.
Each $0.31 NFT Unit will consist of one non-flow-through common
share and one-half of one common share purchase warrant (a "$0.41
NFT Warrant"). Each full $0.41 NFT Warrant shall be exercisable
into one common share at an exercise price of $0.41 per common
share for a period of 36 months from the closing date.
The proceeds from the sale of the FT Units will be for
exploration and development of the Company's Archie Lake,
Saskatchewan rare earth project. The net proceeds from the sale of
the $0.25 NFT Units and $0.31 NFT Units will be used for further
exploration and development of the Elk Creek carbonatite project
located in southeastern Nebraska and for general working capital
purposes.
In consideration of its services, the Agent received a fee equal
to 8% of the gross proceeds of the offering for a total of
$513,521.84 and Agent's warrants to purchase 823,700 units at $0.30
per unit for 36 months from the closing date, consisting of one
common share and one half of one share purchase warrant, with each
full warrant exercisable into one common share at an exercise price
of $0.40 per common share for 36 months from the closing date,
Agent's warrants to purchase 789,500 units at $0.25 per unit for 36
months from the closing date, consisting of one common share and
one half of one share purchase warrant, with each full warrant
exercisable into one common share at an exercise price of $0.35 per
common share for 36 months from the closing date, and Agent's
Warrants to purchase 636,829 units at $0.31 per unit for 36 months
from the closing date, consisting of one common share and one half
of one share purchase warrant, with each full warrant exercisable
into one common share at an exercise price of $0.41 per common
share for 36 months from the closing date.
In addition, a finder's fee equal to 2% of $3,000,000 of the
gross proceeds of the offering for a total of $60,000 is payable to
Lockwood Financial Ltd.
All securities issued under the private placement are subject to
a four month hold period expiring March 6, 2011.
About MGI Securities Inc.
MGI is an integrated Canadian investment dealer offering
professional wealth management solutions for individual investors,
a comprehensive range of specialized services for institutional
investors, and corporate finance advisory services for issuers,
including mergers and acquisitions, equity underwritings, corporate
restructuring, structured financings, market research, and business
valuation services. MGI is based in Toronto, with additional
offices in Winnipeg, Saskatoon, Calgary and London, Ontario. MGI is
a member of IIROC and is a subsidiary of Jovian Capital Corporation
(TSX: JOV.TO). MGI has approximately $1.2 billion in client assets
under administration.
On Behalf of the Board,
Peter Dickie, President
"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: Quantum Rare Earth Developments Corp. Peter Dickie
President and CEO (604) 669-9330 (604) 669-9335 (FAX)
www.quantumrareearth.com MGI Securities Inc. John McMahon
Investment Banker (416) 777-5178 jmcmahon@mgisecurities.com
Niocorp Developments Ltd. (TSXV:QRE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Niocorp Developments Ltd. (TSXV:QRE)
Historical Stock Chart
From Jul 2023 to Jul 2024