$6 MILLION FINANCING FOR KEMESS PROJECT
$6 MILLION FINANCING FOR KEMESS PROJECT VANCOUVER, British Columbia, May 15 /PRNewswire/ -- Robert G.
Hunter, chairman of El Condor Resources Ltd. (Vancouver: ECN), wishes to advise that the company has reached agreement in principle with Goepel Shields and Partners Inc. and Yorkton Securities Inc. (the "brokers"), whereby the brokers will be offering, on behalf of the company on a best efforts basis, an aggregate of 1,500,000 units and flow-through units of the company at price of $4.00 each. Each unit and flow-through unit will consist of one common share (or flow- through common share) and a half warrant exercisable until Dec. 31, 1992, with two such warrants together with $4.25 entitling the holder to purchase an additional common share of the company.
The offering will be effected through the private placement issuance of 8 percent convertible promissory notes and flow-through unit purchase agreements to be subsequently qualified for resale by the filing of a prospectus in the appropriate jurisdictions. At the time of issuance of a final prospectus receipt the notes will convert into units. If a final receipt is not obtained within 120 days of closing, subscriptions will be refunded at the election of the subscriber. Up to 33 percent of the offering will be reserved for flow-through unit purchase agreements, with the subscribers being entitled to certain Canadian income tax benefits. In all other respects all units and flow-through units issued at the time of final prospectus receipt will be identical. The brokers will receive a commission of 6 percent, payable in units of the company or cash, at the brokers' election. Closing of the placement is expected to occur on or about June 19, 1992, with the prospectus filings to be effected immediately thereafter. Proceeds from this offering will be used to conduct the 1992 exploration program at the Kemess Properties, consisting primarily of diamond drilling, bulk sampling, metallurgical test work, deposit modelling and infrastructure studies. -0- 5/15/92 /CONTACT: Robert G. Hunter, chairman of El Condor Resources, 604-684-6365/ (ECN) CO: El Condor Resources Ltd. ST: British Columbia IN: MNG SU:
AL -- LA036 -- 0904 05/15/92 16:04 EDT
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|Date:||May 15, 1992|
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