TORONTO, ONTARIO, Nov 11 (MARKET WIRE) --
Delta Uranium Inc. (TSX: DUR)("Delta" or the "Corporation") announces the
closing of the second and final tranche of a flow-through unit financing
and the closing of the first tranche of a hard dollar unit financing.
Second Tranche of Flow-Through Unit Financing
On November 6, 2009 the Corporation completed the second and final
tranche of a previously announced private placement (the "Flow-Through
Private Placement") of flow-through units ("FT Units") at a purchase
price of C$0.06 per FT Unit. Each FT Unit consists of one flow-through
common share and one flow-through common share purchase warrant (a "FT
Warrant"). Each FT Warrant issued in the second tranche are exercisable
into one common share of the Corporation for a period of two years until
November 6, 2011, at a price of C$0.15 per share in year one and at
C$0.20 in year two.
Delta closed the first tranche of the Flow-Through Private Placement on
October 7, 2009 with a total of 8,140,332 FT Units issued, raising gross
proceeds of $488,420. Please see Delta's press release of October 8, 2009
for details of the first tranche closing. In the second tranche closing
completed on November 6, 2009, Delta issued a total of 4,359,666 FT
Units, raising gross proceeds of $261,580. The Flow-Through Private
Placement was fully subscribed by the two tranches, with a total of
12,499,998 FT Units issued, raising in aggregate $750,000.
Of the amount raised in both tranches, the MineralFields Group subscribed
for C$491,580 through the purchase of 8,192,998 FT Units (7,833,332 FT
Units in the first tranche and 359,666 FT Units in the second tranche).
MineralFields Group now holds approximately 18.65% of all issued and
outstanding common shares of the Corporation and is therefore an insider
of the Corporation.
In the second tranche closing, the Corporation paid to Limited Market
Dealer Inc. ("LMD"), an affiliate of MineralFields Group, Toll Cross
Securities Inc. ("Toll Cross") and Northern Securities Inc., a cash
finder's fee equal to 5% of the FT Units subscribed for by their
respective clients. In addition, the Corporation granted LMD and Toll
Cross finder's fee options (the "Finder's Options") to acquire in
aggregate 1,069,299 finder's units ("Finder Units") with 35,966 Finder
Units for LDM and 250,000 Finder Units for Toll Cross. Each Finder's
Option is exercisable at a price of C$0.06 into one Finder Unit for a
period of two years until November 6, 2011. Each Finder Unit will consist
of one non-flow-through common share and one non-flow-through share
purchase warrant. The warrants will have the same exercise price and
terms as the FT Warrants issued under the second tranche of the
Flow-Through Private Placement.
All securities issued in the second tranche Flow-Through Private
Placement are subject to a four months hold period expiring March 7, 2010.
The proceeds of the Flow-Through Private Placement financing will be used
to incur Canadian Exploration Expenses (as defined in the Income Tax Act
(Canada)) at Delta's properties in Ontario, Saskatchewan and Newfoundland.
First Tranche of Hard Unit Financing
Delta is also pleased to announce the closing of the first tranche of a
previously announced private placement financing (the "Hard Unit Private
Placement") of up to 4,916,667 non-flow-through units (the "Units"). A
total of 2,666,666 Units were issued today at $0.06 per Unit for
non-insider subscribers and $0.078 per Unit for insider subscribers,
raising gross proceeds of $195,400. Each Unit is comprised of one common
share in the capital of the Corporation and one common share purchase
warrant (a "Warrant"). Each Warrant will be exercisable into one common
share in the capital of the Corporation at any time on or before November
11, 2011 at an exercise price of $0.15 per share if exercised in the
first year, or $0.20 per share if exercised in the second year.
Four insiders of the Corporation, Messrs. Wayne Isaacs (Chairman & CEO),
Kirk Boyd (Director and COO), Colin Bowdidge (Director) and Rick Bonner
(Director) subscribed for 1,966,666 Units, or 40% of the maximum number
of Units issuable in the Hard Unit Private Placement, at $0.078 per Unit
which is the current market price of the Corporation's common shares on
the Toronto Stock Exchange.
All securities issued in the first tranche Hard Unit Private Placement
are subject to a four months hold period expiring March 12, 2010.
The proceeds of the Hard Unit Private Placement will be used for general
working capital purposes.
Depending on market conditions, the Corporation may proceed with a second
tranche closing by selling further Units.
Resignation of Director
Delta also wishes to announce that due to personal time commitments,
Patrick Mohan has tendered his resignation from the Board of Directors.
We thank him for his dedicated service to the Board and the Corporation
and wish him the very best for the future.
About MineralFields
MineralFields Group (a division of Pathway Asset Management) based in
Toronto, Vancouver and Calgary, is a mining fund with significant assets
under administration that offers its tax-advantaged super flow-through
limited partnerships to investors throughout Canada as well as
hard-dollar resource limited partnerships to investors throughout the
world. Pathway Asset Management also specializes in the manufacturing and
distribution of structured products and mutual funds. Information about
MineralFields Group is available at www.mineralfields.com. First Canadian
Securities(R) is active in leading resource financings (both flow-through
and hard dollar PIPE financings) on competitive, effective and
service-friendly terms, and offers investment banking, mergers and
acquisitions, and mining industry consulting services to resource
companies. MineralFields and Pathway have financed several hundred mining
and oil and gas exploration companies to date through First Canadian
Securities(R).
About Delta Uranium Inc.
Delta Uranium is TSX listed Canadian exploration company actively engaged
in the acquisition, evaluation and exploration of uranium mineral
properties in northeastern and northwestern Ontario, Athabasca Basin and
Western Newfoundland, Canada.
Forward-looking information
This press release includes "Forward-Looking Information" within the
meaning of the applicable securities legislation. Forward-looking
information can be identified by the use of words such as "may,"
"should," "expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "intends," "continues," or the negative of such terms, or
other comparable terminology. All statements regarding the proposed use
of proceeds and completion of future tranches of the Hard Unit Private
Placement are forward-looking information that involves various risks and
uncertainties. There is no assurance that further tranches of the Hard
Unit Private Placement will be completed set forth in this press release
or at all. There can be no assurance that such information will prove to
be accurate and actual results and future events could differ materially
from those anticipated in such information. Important factors that could
cause actual results to differ materially from these forward-looking
information include: global economic factors, which may affect the
availability and cost of financing; results of due diligence reviews by
financing parties; unforeseen obstacles in the exploration work;
increases in anticipated cash costs, operating costs, mining costs,
capital expenditures and other costs; delays in obtaining equipment or
personnel; decreases in anticipated mineral resources and metal prices,
and other factors disclosed under the heading "Risk Factors" and
elsewhere in Delta documents filed from time to time with the Toronto
Stock Exchange, the Ontario Securities Commission and other regulatory
authorities. All forward-looking information included in this press
release is based on information available to Delta on the date hereof.
Delta assumes no obligation to update any forward-looking information
unless required by law.
The TSX has not reviewed and does not accept responsibility for the
adequacy of this news release.
Contacts:
Delta Uranium Inc.
Wayne Isaacs
Chairman and CEO
(416) 363-3582
news@deltauranium.com
www.deltauranium.com
Copyright 2009, Market Wire, All rights reserved.
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