Starcore International Mines Ltd. Closes on $2.5 million Financing
12.04.2011 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - April 12, 2011) - Further to its press release of March 25, 2011, Starcore International Mines Ltd. (TSX: SAM) (the "Company") announces that it has closed on its non-brokered financing for gross proceeds of $2,543,000. The financing was in the form of:- 10,170,905 Units at $0.11 per Unit (a "Unit"), each Unit comprised of one common share of the Company (a "Common Share") and one-half of one transferable share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire one common share of the Company at a price of $0.15 to April 7, 2013.
- 12,947,276 Special Warrants at $0.11 per Special Warrant, each Special Warrant exercisable, at no additional cost, into one Unit.
Of the 23,118,181 Units and Special Warrants issued by the Company (the "Securities"), Sprott Asset Management subscribed for an aggregate of 15,040,000 of the Securities, and Sprott Private Wealth subscribed for an aggregate of 3,260,000 of the Securities, or a total of 18,300,000 Securities subscribed for by the Sprott group of funds.
Finders' fees applied in this transaction in the form of cash commissions in the aggregate amount of $148,362.05 and 2,147,910 non-transferable Finder's Warrants to registered dealers, each Warrant entitling the holder to acquire one common share of the Company at a price of $0.15 to April 7, 2012.
Pursuant to TSX policies, the exercise of the Special Warrants and 1,187,455 Finder's Warrants will be subject to shareholder approval, which approval will be sought at the extraordinary meeting of shareholders scheduled for June 3, 2011. The Special Warrants will be deemed to be exercised on the date which is two business days after the receipt of shareholder approval for the exercise of the Special Warrants. If shareholder approval is not received, the funds relating to the purchase of the Special Warrants will be returned to subscribers.
All securities issued pursuant to the private placement are subject to a four month hold period to August 8, 2011.
The proceeds from this private placement will be added to working capital and will be used for ongoing mine exploration and development of San Martin, the Company's gold and silver producing mine located in Queretaro, Mexico.
For more information on the Company visit our website at www.starcore.com.
ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.
Robert Eadie
Chief Executive Officer
The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.
Contact Information
Starcore International Mines Ltd.
Robert Eadie, Chairman
1-604-602-4935 or Toll Free: 1-866-602-4935
1-604-602-4936 (FAX)
info@starcore.com
www.starcore.com