Columbia Announces Closing of Private Placement and Enters Into Fiscal Agency Agreement With Union Securities.TORONTO -- Columbia Metals Corporation Limited (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:COL) announces the closing of its previously announced private placement financing. Under the previously announced private placement financing, the gross proceeds of $910,000, representing 2,600,000 units at a price of $0.35 per unit have been received. Each unit is comprised of one common share and one common share purchase warrant of Columbia. Each common share purchase warrant will entitle the holder to acquire one Columbia share at a price of $0.45 per share on or before July 10, 2006. Notwithstanding the one (1) year exercise period, a mandatory exercise of the warrants will occur should the common shares of the Company trade at or over $0.60 for twenty (20) consecutive trading days. Lightfoot Ltd. has received a finder's fee Finder's fee A fee a person or company charges for service as an intermediary in a transaction. finder's fee The charge levied by a person or firm for putting together a deal. in the amount of 6,000 units. Each unit comprised of one common share and one finder's warrant. Each finder's warrant is exercisable at $0.45 per share for a period of one year from the date of issuance. The amount of finder's fee equals 5 per cent of the funds raised by Lightfoot pursuant to the financing. Union Securities Ltd. has received a finder's fee in the amount of $15,312.50 in cash and 87,500 in finder's warrants. Each finder's warrant is exercisable at $0.45 per share for a period of one year from the date of issuance. The amount of finder's fee equals 5 per cent of the funds raised by Union Securities pursuant to the financing. Columbia intends to use the proceeds of the private placement financing for general working capital and for development work on Columbia's properties in Mexico. Carl Di Placido Placido may refer to any of the following: People Placido is a traditional Spaniard clan name (see Clan Placido) and it is now a common given name and a less common surname. It is also a fairly common surname in Southern Italy. and Chris Berlet, two directors of Columbia, have subscribed for 380,000 units pursuant to this offering. The insider private placement was reviewed by the independent directors of Columbia, who determined that the terms of the private placement were reasonable in the circumstances of Columbia. The insider private placement are exempt from the valuation and minority approval requirements of OSC O.S.C. n. short for Order to Show Cause. (See: Order to Show Cause) Rule 61-501, since the fair market value of the insider private placement is less than 25% of the market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of Columbia and as the fair market value of the insider private placement is for an amount less than $2,500,000. Columbia is also pleased to announce that it has entered into a fiscal agency agreement with Union Securities Ltd. Under the terms of the agreement Union Securities will provide ongoing fiscal agency services Fiscal agency services Services performed by the Federal Reserve Banks for the U.S. government. These include maintaining deposit accounts for the Treasury Department, paying U.S. , equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , and other like services to Columbia. Shares Outstanding: 37,112,077 The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Columbia Metals Corporation Limited (TSX VENTURE:COL) |
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