Owner
Post by Franko10 ™ on Jan 31, 2005 15:18:53 GMT -5
Kensington Resources Closes $6 Million Equity Financing
VICTORIA, British Columbia -- Kensington Resources Ltd. (TSX VENTURE:KRT) (the "Company") announces that it has closed the $6 million private placement of flow-through shares and units previously announced on September 8, 2004. The securities were sold on a best efforts agency basis by Loewen, Ondaatje, McCutcheon Limited ("LOM").
A total of 2,307,692 flow-through common shares were issued at a price of CDN $1.30 per flow-through share and a total of 2,857,143 non-flow through units were issued at a price of CDN $1.05 per unit to accredited investors in British Columbia, Alberta, Ontario and overseas. Each non flow-through unit consists of one non flow-through common share and one half of one share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional non flow-through common share for a period of eighteen months from closing, at a price of CDN $1.25 for the first twelve-month period and CDN $1.55 for the last six-month period.
LOM received a commission of 7% of the gross proceeds of the offering. In addition, the Agent received warrants entitling the Agent to purchase for a period of eighteen months from closing: (i) 161,539 non-flow through common shares at a price of $1.05 per share; and (ii) 200,000 units on the same terms as the offering at a price of $1.05 per unit. All of the securities are subject to a four-month hold period in Canada in accordance with applicable securities laws, expiring January 25, 2005.
The gross proceeds of the offering of the flow-through shares will be used for Canadian Exploration Expenses (as such terms are defined in the Income Tax Act (Canada)) on the Fort a la Corne Diamond Project in Saskatchewan. The proceeds of the offering of the units will be used for exploration programs on the Fort a la Corne Diamond Project and for general corporate purposes.
Using the expertise of proven management and world-class, experienced technical advisors, Kensington Resources Ltd. is actively involved in confirming the economic potential of the Fort a la Corne Diamond Project and moving the project forward to a development decision as rapidly as possible. The Fort a la Corne Diamond Project is a joint venture among Kensington Resources Ltd. (42.25%), De Beers Canada Exploration Inc., a wholly owned subsidiary of De Beers (42.25%), Cameco Corporation (5.5%) and UEM Inc. (carried 10%). The 71+ kimberlite bodies of the Fort a la Corne Field form one of the largest diamondiferous clusters in the world.
LISTED IN STANDARD & POOR'S
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
COPYRIGHT 2004 Business Wire
COPYRIGHT 2004 Gale Group
VICTORIA, British Columbia -- Kensington Resources Ltd. (TSX VENTURE:KRT) (the "Company") announces that it has closed the $6 million private placement of flow-through shares and units previously announced on September 8, 2004. The securities were sold on a best efforts agency basis by Loewen, Ondaatje, McCutcheon Limited ("LOM").
A total of 2,307,692 flow-through common shares were issued at a price of CDN $1.30 per flow-through share and a total of 2,857,143 non-flow through units were issued at a price of CDN $1.05 per unit to accredited investors in British Columbia, Alberta, Ontario and overseas. Each non flow-through unit consists of one non flow-through common share and one half of one share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional non flow-through common share for a period of eighteen months from closing, at a price of CDN $1.25 for the first twelve-month period and CDN $1.55 for the last six-month period.
LOM received a commission of 7% of the gross proceeds of the offering. In addition, the Agent received warrants entitling the Agent to purchase for a period of eighteen months from closing: (i) 161,539 non-flow through common shares at a price of $1.05 per share; and (ii) 200,000 units on the same terms as the offering at a price of $1.05 per unit. All of the securities are subject to a four-month hold period in Canada in accordance with applicable securities laws, expiring January 25, 2005.
The gross proceeds of the offering of the flow-through shares will be used for Canadian Exploration Expenses (as such terms are defined in the Income Tax Act (Canada)) on the Fort a la Corne Diamond Project in Saskatchewan. The proceeds of the offering of the units will be used for exploration programs on the Fort a la Corne Diamond Project and for general corporate purposes.
Using the expertise of proven management and world-class, experienced technical advisors, Kensington Resources Ltd. is actively involved in confirming the economic potential of the Fort a la Corne Diamond Project and moving the project forward to a development decision as rapidly as possible. The Fort a la Corne Diamond Project is a joint venture among Kensington Resources Ltd. (42.25%), De Beers Canada Exploration Inc., a wholly owned subsidiary of De Beers (42.25%), Cameco Corporation (5.5%) and UEM Inc. (carried 10%). The 71+ kimberlite bodies of the Fort a la Corne Field form one of the largest diamondiferous clusters in the world.
LISTED IN STANDARD & POOR'S
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
COPYRIGHT 2004 Business Wire
COPYRIGHT 2004 Gale Group
