Gastem Closes Private Placements for $2.25 Million

Gastem (TSX VENTURE:GMR.V) has closed two private placements for a total of $2,250,000.

The first private placement was with Bearbeech Capital Partners Corp. for a brokered private placement of $1,150,000. The placement consisted of the Company issuing 2,300,000 Units at a price of $0.25 per Unit for gross proceeds of up to $575,000. Each Unit is composed of one common share of the Company and one-half of one share purchase warrant, with each whole warrant entitling the holder thereof to purchase one Common Share of the Company at a price of $0.35 per share for a period of two years from the date of closing (December 22nd 2008). The brokered private placement also included 2,300,000 flow through shares at $0.25 per share for gross proceeds of $575,000. The flow through shares do not carry a half warrant.

This offering was made to accredited investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Alberta, Ontario and Quebec and is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange. All the securities issued pursuant to this offering are subject to a hold period of four months from closing (April 22nd 2007). A commission equal to 8% of the gross proceeds, as well as broker Unit warrants equal to 10% of issued Units at $0.25, are payable by the Company to Bearbeech Capital Partners Corp.

The Company has also closed a non-brokered private placement of up to $1,100,000 on December 20th 2006. This non-brokered private placement consisted of 750 Units at a price of $1,000 per Unit for gross proceeds of $750,000. Each Unit consisted of 4,000 common shares of the Company (or $0.25 per share) and 2,000 share purchase warrants, with each warrant entitling the holder thereof to purchase one Common Share at a price of $0.35 per share for a period of two years from the date of closing. This non-brokered private placement also included up to 350 Units comprised of 4,000 flow through Shares at a price of $1,000 per Unit (or $0.25 per flow through share) for aggregate gross proceeds of $350,000. The flow through shares do not carry a half warrant.

This non-brokered offering was made to accredited investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Alberta, Ontario and Quebec. It is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange. All the securities issued pursuant to this offering are subject to a hold period of four months from the date of closing.

The Company intends to use the net proceeds of the private placements for exploration and development of the Company's St. Lawrence Lowlands properties and as general working capital.

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