Happy Creek Completes Second Tranche of Non-Brokered Private PlacementNovember 24, 2011: Vancouver, British Columbia — Happy Creek Minerals Ltd. (TSX-V: HPY) (the “Company”) is pleased to announce that it has completed the final tranche of its previously announced non-brokered private placement. The Company issued 643,334 flow-through units (“FT Units”) at a subscription price of $0.30 per FT Unit for gross proceeds of $193,000. Each FT Unit consists of one flow-through common share of the Company and one-half of one share purchase warrant (“FT Warrant”). Each flow-through common share qualifies as a “flow-through share” for the purposes of the Income Tax Act (Canada). Each whole FT Warrant is exercisable into a common share of the Issuer at a price of $0.40 per common share for a period of 18 months from the closing date of the offering. All of the securities are subject to a hold period expiring on March 24, 2012.
In the aggregate, when combined with units issued in the first tranche closing undertaken in connection with the private placement, the Company issued an aggregate of 7,460,333 FT Units and 2,660,000 non-flow-through units (“NFT Units”) of the Company (at a subscription price of $0.25 per NFT Unit), bringing total gross proceeds to $2,903,100. Each NFT Unit consists of one common share of the Company and one-half of one share purchase warrant (“NFT Warrant”). Each whole NFT Warrant is exercisable into a common share of the Issuer at a price of $0.35 per common share for a period of 18 months from the closing date of the offering.
The Company paid a finder’s fee in connection with the second tranche, which comprised of a cash component of 7% of the gross proceeds raised from the sale of FT Units and finder’s options (the “Finder’s Options”) equal to 8% of the total number of FT Units purchased by subscribers introduced to the Company by such finder. Each Finder’s Option entitles the holder to acquire one unit (a “Finder’s Unit”) of the Company at a price of $0.30 per Finder’s Unit for a period of 18 months following the closing of the offering. Each Finder’s Unit will consist of one common share and one-half of one common share purchase warrant (each whole warrant a “Finder’s Warrant”). Each Finder’s Warrant entitles the holder to acquire one common share of the Company at an exercise price of $0.35 per share for a period of 18 months from the closing date of the offering.
The proceeds from the second tranche will be used to continue exploration on the Company’s resource properties, which will constitute Canadian exploration expenditures (as defined in the Income Tax Act (Canada)).
FOR FURTHER INFORMATION PLEASE CONTACT:
David E. Blann, President and CEO
Toll free: 1-877-459-5507
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.
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