|
VMS VENTURES INC. ANNOUNCES $19,500,000 PRIVATE PLACEMENT
October 18, 2007
VMS Ventures Inc. plans on raising up to
$19.5-million through a brokered private placement offering of units and
flow-through shares. The private placement, which will be offered by a syndicate
of agents led by GMP Securities LP, and including Evergreen Capital Partners
Inc. and Jennings Capital Inc., on a best-efforts basis, will consist of up to
eight million units of the company at a price of $1.50 per unit and up to five
million common shares of the company which qualify as flow-through shares for
the purposes of the Income Tax Act (Canada) at a price of $1.50 for each
flow-through share.
Each unit will consist of one common share of the company and one transferable
common share purchase warrant of the company. Each warrant shall entitle the
holder thereof to acquire one common share of the company at a price of $2.25
for a period of two years following the closing date of the private placement.
Closing of the offering is anticipated to occur on or before Nov. 7, 2007, and
is subject to receipt of applicable regulatory approvals including approval of
the TSX Venture Exchange. The unit shares, flow-through shares and common shares
issuable upon exercise of the warrants will be subject to resale restrictions
for a period of four months plus one day from the closing date of the private
placement.
The net proceeds from the sale of the units will be used to finance continuing
exploration and development activities, and for general corporate purposes. The
gross proceeds received by the company from the sale of the flow-through shares
will be used to incur eligible Canadian exploration expenses (CEE) that qualify
as Canadian exploration expenses for purposes of the Income Tax Act (Canada) and
which will be renounced in favor of the holders with an effective date of no
later than Dec. 31, 2007.
ON BEHALF OF THE BOARD OF DIRECTORS
Rick Mark
CEO & Chairman
For further information contact:
|
Keith Patey,
Director of Communications
Telephone: (604) 986-2020
Toll Free: 1-866-816-0118 |
Steve Kubota
Coal Harbor Communications
Telephone: (604) 662-3237
Toll Free: 1-866-405-3955 |
The TSX Venture exchange does not accept responsibility for the
adequacy or
accuracy of this release. |
