Aug 31, 2010
Edgewater Completes $10.4 Million Financing
Edgewater Exploration Ltd. (TSXV: EDW, the "Corporation") is pleased to announce that is has closed its previously announced subscription receipt private placement with a syndicate of agents led by Cormark Securities Inc. and including PI Financial Corp., Canaccord Genuity Corp., and Haywood Securities Inc. (collectively the "Agents") at a price of $1.00 per subscription receipt for gross proceeds of $10,413,000.
The gross proceeds from the sale of subscription receipts have been deposited into escrow with Computershare Trust Company of Canada and shall only be released from escrow upon the occurrence of the following events; receipt of i) TSX Venture Exchange final approval of the Corporation's recently announced acquisition of Rio Narcea Gold Mines S.L pursuant to an agreement with Lundin Mining Corporation, and ii) the Corporation and Cormark, on its own behalf and on behalf of the other Agents, acting reasonably, having delivered a joint notice to Computershare confirming that the escrow release conditions have been met (collectively the "Release Conditions"). If the Release Conditions have not occurred on or prior to that date which is 60 days following today's date, the proceeds of the offering shall be returned to the holders of the Subscription Receipts.
Each Subscription Receipt shall entitle the holder thereof to acquire, upon satisfaction of the Release Conditions, for no additional consideration, one unit (a "Unit") of the Corporation. Each Unit will consist of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant shall be exercisable into one common share of the Corporation at $1.40 for a period of three years from the date that the Release Conditions have been satisfied (the "Release Date").
On the Release Date, the Agents will be paid a cash commission equal to 6.0% of the gross proceeds of the offering and will be issued broker warrants to acquire 624,780 common shares of Corporation at an exercise price of $1.10 per common share for a period of 18 months following the Release Date.
The proceeds of the financing will be used to fund development of the Corporation's exploration and drilling programs in Ghana and Spain, scheduled property payments and general working capital.
On behalf of the board of EDGEWATER EXPLORATION LTD.
George Salamis, President and CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Edgewater Exploration Ltd.
"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."
"THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S.. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN, THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM"
You can view the Next News Releases item: Tue Sep 21, 2010, Edgewater Completes Purchase Of Rio Narcea Gold Mines S.L. From Lundin Mining, Including The Corcoesto Gold Deposit, Spain Hosting 315,000 Ozs Measured And Indicated And 885,000 Ozs Inferred
You can view the Previous News Releases item: Mon Aug 23, 2010, EDGEWATER EXPLORATION LTD. ANNOUNCES EXERCISE OF OVERALLOTMENT OPTION
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