Papuan Precious Metals Corp.(the “Company”) is pleased to announce that the non-brokered private placement announced February 7, 2011 has closed and the Company raised a total of $7,020,000 from the sale of 15,600,000 common share units.
The units were sold at $0.45 per unit and each unit consisted of one common share and one-half of one common share purchase warrant exercisable at $0.55 with an expiry date of September 11, 2012.
If the closing price of the Company’s common shares on the TSX Venture Exchange is greater than $1.00 per share for a period of 10 consecutive trading days at any time after July 10, 2011 the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof whereupon the Warrants will expire on the 30th day after such notice.
The Company has paid Finders a fee equal to 7.0% of the amount of units sold to investors located and the Finders have been issued compensation warrants to purchase that number of common shares equal to 7.0% of the number of Units sold to such investors. Each compensation warrant is exercisable to purchase one common share of the Corporation at $0.55 until March 9, 2012.
The shares and warrants will be subject to resale restrictions for a period of four months.
The net proceeds from the sale of the units will be used to advance the development of the Company’s properties, for potential acquisitions and for general working capital.
ON BEHALF OF THE BOARD
Dev Randhawa, Chairman & CEO
For further information contact Greg Downey at 1.866.979.7022.
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