Canabrava Closes A $740,000 Financing.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , B.C.--(BUSINESS WIRE)--Dec. 28, 2001 Canabrava Diamond Corporation ("Canabrava") (CDNX CDNX See Canadian Venture Exchange (CDNX). :CNB CNB Czech National Bank CNB Centro Nacional de Biotecnologia CNB City National Bank CNB Citizens National Bank CNB Croatian National Bank CNB Chloronitrobenzene CNB Corresponsales No Bancarios (Spanish, Colombia) .) announced that the proposed private placement disclosed on December 10, 2001 has now closed and it has received gross proceeds of $740,000. Subscribers elected to purchase 800,000 flow through common shares at $0.25 per share and 2,160,000 purchase non-flow through units at $0.25 per unit. Each unit consisted of one non-flow through common share and one-half of a non-flow through common share purchase warrant. Each whole share purchase warrant entitles the holder to buy one non-flow through common share for $0.30 within 12 months after closing. Haywood Securities Inc. acted as agent for the financing and was paid a commission of 7.5% of gross proceeds from the sale of the shares and units and received 296,000 broker warrants. Each broker warrant will entitle en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: the holder to purchase one non-flow through common share at a price of $0.30 within 12 months after closing. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale of the private placement will be used for ongoing exploration and development programs in Canada and Brazil, subject to flow through funding expenditure requirements. Southwestern Resources Corp. (SWG-T) was one of the private places and purchased 2,000,000 units at $0.25 per unit from Canabrava. In a separate transaction announced yesterday, Southwestern sold 2,000,000 free trading shares of Canabrava through the facilities of the Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) . Southwestern now owns 19,980,550 shares of Canabrava, representing 42.6% of its outstanding shares. Southwestern has no current intention to increase the beneficial ownership, control or direction of Canabrava, other than through the exercise of warrants. Canabrava Diamond Corporation is actively exploring for diamonds in Brazil and Canada both independently and through major joint ventures with Kennecott Canada Exploration Inc., SouthernEra Resources Limited, Navigator See Netscape Navigator, Netscape and Norton Navigator. Navigator - Netscape Navigator Exploration Corp. and Majescor Resources Inc. The Company is 42.6% owned by Southwestern Resources Corp. The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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