By Sheri Kasprzak
Atlanta, Jan. 31 - Street Resources Inc. said it is attempting to raise C$4 million in a private placement.
The company plans to sell up to 10 million subscription receipts at C$0.40 each.
The offering is a condition that must be met in order to close its acquisition of Exmin Inc., a private gold exploration company. Exmin currently holds properties in the Sierra Madre gold belt in Mexico.
Once the acquisition is completed, the subscription receipts will automatically convert into a unit of one share and one half-share warrant. The whole warrants allow for an additional share at C$0.60 each for two years.
The net proceeds from the private placement will be held in escrow until the acquisition is completed. If the acquisition is not completed by April 30, the subscription receipts will be repurchased by Street at their issue price.
McFarlane Gordon Inc. is the placement agent in the offering.
Based in Toronto, Street Resources is a gold exploration company.
| Issuer: | Street Resources Inc.
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| Issue: | Subscription receipts for units of one share and one half-share warrant
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| Amount: | C$4 million
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| Units: | 10 million
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| Price: | C$0.40
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.60
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| Placement agent: | McFarlane Gordon Inc.
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| Pricing date: | Jan. 31
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| Stock price: | C$0.39 at close Jan. 31
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