CENTRAL ANNOUNCES $750,000 FINANCING


Central Resources Corp. has negotiated a non-brokered private placement of $750,000 through the sale of 3.75 million flow-through units at a price of 20 cents per unit.

Each flow through unit will consist of one flow-through common share and one-half of one non-flow-through share purchase warrant. Each whole warrant will entitle the holder to purchase one additional non-flow-through common share of the company for a period of 12 months from closing at an exercise price of 40 cents. The company may accelerate the expiry of the warrants (following the expiry of the four-month hold period) if the 20-day volume-weighted average trading price of the shares on the TSX Venture Exchange (or such other exchange on which the shares may be listed) exceeds 60 cents in which event the warrant will expire 30 calendar days after the date that the company provides notice to the holders.

The company will pay a cash finder’s fee equal to 6 per cent of the gross proceeds raised in the private placement. The company will also issue that number of finder’s warrants equal to 10 per cent of the number of units sold under the private placement. Each finder’s warrant will entitle the holder to purchase one non-flow-through common share of the company for a period of 12 months from closing at an exercise price of 40 cents. The finder’s warrant will be subject to the same acceleration provisions as the flow-through units sold in the private placement.

The proceeds from the private placement will be used for exploration work on the company’s Yukon mineral properties. The 2011 exploration program is planned to consist of soil sampling and trenching to follow up gold soil anomalies identified last year. A follow-up diamond drill program is planned for fall.

Closing is subject to a due diligence condition and the acceptance of the TSX-V. All securities issued under the private placement will be subject to a four-month hold period.

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