SLAM announces a $7.5 million financing
SLAM Exploration Ltd. (TSX-V – SXL) is pleased to announce an offering of flow-through common shares and units that could result in new equity proceeds of up to $7,500,000 which will be used to fund its ongoing exploration and development obligations of its 50/50 Bathurst mining camp joint venture with Noranda Inc. (“Bathurst JV”) and SLAM’s gold projects.
Dundee Securities Corporation will act as agent for the offering which is structured in two components. The first is a guaranteed placement of 3,125,000 flow-through common shares at $0.80 per share to raise proceeds of $2,500,000 with an option for the agents to place up to an additional 1,875,000 flow-through common shares for a further $1,500,000 on or before the closing of the offering.
The second component of the offering consists of up to 4,375,000 units, being offered on a best efforts basis, to raise gross proceeds of up to $3,500,000. Each unit will consist of one common share and one common share purchase warrant with each warrant entitling the holder to purchase one common share at a price of $1.00 per share for a period of 24 months from closing.
The offering is expected to be completed on or about April 16, 2004 and is subject to regulatory approval and other customary conditions.
The Megatem survey and airborne gravity survey that comprise Phase I exploration program of the Bathurst JV are near completion. The Phase II program will include follow-up surveys as well as commencement of the diamond drilling in June 2004. SLAM will release more information about the results of Phase I in the near future.
SLAM’s gold projects include five properties located near Fort Hope, Ontario. SLAM intends to commence diamond drilling at the Miminiska-Keezhik gold project where SLAM has an option to earn a 70% interest. This comprises 660 claim units that are underlain by gold-bearing rocks of the Uchi subprovince. As well, SLAM will commence diamond drilling on its 100%-owned Cadman gold property, located in the same area.
SLAM anticipates that majority of the above expenditures will qualify for eligible Canadian exploration expenditures as defined for the purposes of the flow-through shares. The balance of the proceeds will be used to fund for general working capital purposes.
SLAM Exploration Ltd. is a mineral resource company based in Miramichi, New Brunswick. In addition to the Bathurst JV and gold properties in Ontario, SLAM owns 100% interest in the Lewis Brook, Costigan and Nash Creek polymetallic properties in New Brunswick.