Tuesday, February 10, 2015

St-Georges Platinum boosts placement to $720,000

2015-02-10 16:19 ET - News Release

Mr. Frank Dumas reports
St-Georges Platinum and Base Metals Ltd. is changing the terms of its current financing announced on Feb. 5. Terms of the financing. The Company is now planning for a private placement of up to $720,000. The offering will consist of units to be priced at $0.06 each instead of the $0.05 initially announced. All other terms remain the same.

The Units will consist of one common share and one non-transferable 3-year warrant entitling the purchaser to acquire one common share. The warrants will have an initial exercise price of $0.075 in the first 9 months; the exercise price will increase to $0.15 for the following 9 months; and finally the exercise price will increase to $0.30 for the last 18 months of their 3-year duration.
At its discretion, the Company will be able to force the exercise of the warrants if the price of the common shares on the CSE is at or above 150% of the warrants' exercise price for 10 consecutive days on a VWAP calculation.

Proceeds of this financing will be used to reduce the company debts, advance exploration work on its Julie Nickel Discovery Project and general administrative purposes. Multilateral Instrument 61-101 Given the proposed participation of the insider holders, the proposed financing constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security holders in Special Transactions ("MI 61-101"). St-Georges is relying on an exemption to both the formal valuation and the minority shareholder approval requirements of MI 61-101, as neither the fair market value of the Units to be distributed to, nor the fair market value of the consideration to be received by St-Georges from the insider holders in connection with the proposed financing exceeds 25% of St-Georges' share capitalisation.

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