By Devika Patel
Knoxville, Tenn., Oct. 2 - Clifton Star Resources Inc. announced it plans to raise C$2.5 million in three private placements of units.
In the first deal, totaling C$1 million, the company will sell 408,161 flow-through units of one share and one warrant at C$2.45 per unit to MineralFields Group. Each warrant will be exercisable at C$2.60 for two years.
The company will pay a 5% cash finder's fee and a finder's option equal to 10% of the number of units sold to First Canadian Securities for this deal. The finder's option has the same terms as the warrants sold in the placement.
In the second C$500,000 non-brokered deal, Clifton Star will sell 204,082 flow-through units of one share and one warrant at C$2.45 per unit to Canadian Dominion Resources 2007 Ltd. Partnership and CMP 2007 Resource Ltd. Partnership. Each warrant will be exercisable at C$2.10 for two years.
In the third deal, the company will raise C$1 million in the sale of 500,000 hard dollar units of one share and one warrant at C$2.00 per unit to Dynamic Precious Metals Fund. Each warrant will be exercisable at C$2.10 for two years.
Clifton Star is based in Vancouver, B.C.
| Issuer: | Clifton Star Resources Inc.
|
| Issue: | Flow-through units of one share and one warrant, hard dollar units of one share and one warrant
|
| Amount: | C$2.5 million
|
| Pricing date: | Oct. 2
|
| Stock symbol: | TSX Venture: CFO
|
| Stock price: | C$2.47 at close Oct. 1
|
|
|
| First placement
|
| Amount: | C$1 million
|
| Units: | 408,161
|
| Price: | C$2.45
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.60
|
| Investor: | MineralFields Group
|
| Agent: | First Canadian Securities
|
| Fees: | 5% cash; finder's option equal to 10% of the number of units sold
|
|
|
| Second placement
|
| Amount: | C$500,000
|
| Units: | 204,082
|
| Price: | C$2.45
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.10
|
| Investors: | Canadian Dominion Resources 2007 Ltd. Partnership and CMP 2007 Resource Ltd. Partnership
|
| Agent: | Non-brokered
|
|
|
| Third placement
|
| Amount: | C$1 million
|
| Units: | 500,000
|
| Price: | C$2.00
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.10
|
| Investor: | Dynamic Precious Metals Fund
|
| Agent: | Non-brokered
|
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