International Lima Resources Corp.: Brokered Private Placement With Wolverton Securities.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. , British Columbia--(BUSINESS WIRE)--May 20, 2003 INTERNATIONAL LIMA Lima, city, Peru Lima (lē`mə, Span. lē`mä), city (1990 metropolitan area est. pop. 6,400,000), W Peru, capital and largest city of Peru. Its port is Callao. RESOURCES CORP. has entered into an engagement letter with Wolverton Securities Ltd, where Wolverton has agreed to act as Lima's Agent for a best efforts brokered private placement (the "Private Placement") of a minimum of 1,200,000 units (the "Units") and a maximum of 2,000,000 Units at a price of $0.25 per Unit, for minimum aggregate gross proceeds of $300,000 and maximum gross proceeds of $500,000. Each Unit will consist of one common share and one half of one non-transferable share purchase warrant. Each full share purchase warrant shall be exercisable into one common share at a price of $0.35 at any time for a period of 24 months after the closing of the Private Placement. Wolverton will receive a marketing commission of 9.5% of the gross proceeds of the Private Placement and brokers' warrants for the purchase of that number of Units equal to 10% of the number of Units subscribed for under the Private Placement, exercisable at $0.25 per Unit for a period of 24 months after the closing of the Private Placement. In the event the maximum offering is achieved, Lima has agreed to grant Wolverton a right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. to act as agent in future equity financings 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. for a period of 12 months after the closing of the Private Placement. Earlier this year, Lima entered into option-JV agreements with Rubicon Minerals Corporation to acquire an interest in up to 2,515 mineral claims in the Botwood Basin area of Central Newfoundland Newfoundland, breed of dog Newfoundland, breed of massive, powerful working dog developed in Newfoundland, probably in the 17th cent., and later perfected in England. It stands from 25 to 28 in. (63.5–71. . The agreements cover three separate land packages known as "Southern Golden Promise", "Wings Point-Titan" and "Glenwood Break". Lima can acquire a 60% interest in the properties by issuing up to 1,200,000 shares (400,000 for each property) and by incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. exploration expenditures of $5,250,000 within four years. Proceeds from the Private Placement will be allocated toward Lima's 2003 exploration program on its three Newfoundland properties and general working capital. The agreement with Wolverton is subject to the conclusion of a definitive Agency Agreement and regulatory approval. ON BEHALF OF THE BOARD Mark J. Morabito, President 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 of the adequacy or accuracy of the content of this News Release. |
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