Crosshair Exploration & Mining Corp. has made the second and final closing of a brokered private placement of 4.08 million flow-through common shares, at a price of 25 cents per share, for total gross proceeds of $1.02-million. A total of 740,000 flow-through shares, for gross proceeds of $185,000, were issued at the second closing.
Pursuant to an agency agreement, dated May 18, 2004, Dundee Securities Corp. acted as the agent on a best efforts basis. Dundee received a cash commission of 8 per cent of the total gross proceeds of the $1.02-million private placement. In addition, the company issued Dundee compensation warrants exercisable for a total of 326,400 non-flow-through shares of the company. The compensation warrants will be exercisable at a price of 25 cents per common share for a period of 12 months after the closing date at which they were issued.
All securities issued at the first closing under the private placement will be subject to a four-month hold period from the closing date ending Sept. 19, 2004. All securities issued at the second closing under the private placement will be subject to a four-month hold period from the closing date ending Sept. 28, 2004.
Proceeds from the financing have been allocated to the company's Newfoundland exploration properties. The company has commenced a $900,000 exploration program with approximately $500,000 earmarked for drilling on the Wings Point-Titan, Golden Promise and Glenwood Break properties.