Advanced Explorations Inc. has announced the completion of the first tranche of the private placement previously announced on December 3rd, 2008. A total of 15,999,909 units (the "Units") at a price of $0.11 per Unit were sold for gross proceeds of $1,759,989.99. Each Unit consists of one flow-through common share and one-half of one non flow-through common share purchase warrant. Each whole warrant will be exercisable into one common share for two years from the closing date (the "Closing Date") at an exercise price of $0.16.
Of the 15,999,909 Units, 6,909,000 were sold by Sandfire Securities Inc. pursuant to an agency agreement between Sandfire and the Company and the balance of 9,090,909 Units were sold to the MineralFields Group.
John Gingerich, President & CEO of AEI, commented, "These are difficult times in the financial markets and it requires a strong team and project to attract investment. We are very pleased with the process and the closure of this financing in partnership with Sandfire Securities and the MineralFields Group."
The Company paid a cash commission of $45,599.40 and 552,720 compensation options to Sandfire and a cash commission of $57,000 and 690,909 compensation options to Limited Market Dealer Inc. in connection with the private placement of Units. Each compensation option will entitle the holder to purchase one common share of the Company at an exercise price of $0.11 per common share for a period of 2 years from the Closing Date.
Proceeds of the private placement will be used towards funding development of the Company's magnetite project (the "Project") in Nunavut. All securities issued pursuant to this transaction are subject to a hold period expiring April 13, 2009.
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