Afri-Can Marine Minerals Corp. intends to close a non-brokered private placement for gross proceeds of a minimum of $175,000 and a maximum of $350,000. The private placement will be open to all current shareholders of Afri-Can duly registered on or about July 15, 2014, and to accredited investors, pursuant to applicable exemptions. The minimum subscription is established at $5,000.
Current shareholders interested in participating in the private placement should contact the company by e-mail.
The non-brokered private placement will comprise a minimum of 8.75 million and a maximum of 17.5 million units of Afri-Can, at a subscription price of two cents per unit. Each unit will consist of one common share and one-half common share purchase warrant of Afri-Can. The warrants will expire in two years from the date of closing of the private placement. Each full warrant will entitle the holder thereof to purchase one Afri-Can common share at an exercise price of five cents. Each security issued pursuant to the placement has a mandatory four-month holding period from the date of closing of the placement.
Afri-Can will use the net proceeds of the offering to maintain Afri-Can’s existing operations and activities and for working capital purposes. Completion of the offering is subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. Approval of the sale of the common share portion of the offering is being sought pursuant to the TSX-V’s notice to issuers dated April 7, 2014, regarding the discretionary waivers of five-cent minimum pricing requirement.
The use of proceeds will be as shown in the attached table.
Minimum Maximum
Outstanding exploration expenditures $0 $40,300
Outstanding accounts — administration $105,300 $223,400
Operations for the next six months $54,000 $54,000
Cash financing finder’s fee $15,700 $32,200
Total $175,000 $350,000
Note: Outstanding accounts include audit fees, legal fees,
accounting services, communication to shareholders
and general communication.
No payments will be issued to related parties apart from $12,712 that will be paid to management for repayment of fees paid on behalf of the company. This amount will be paid only if the financing is fully subscribed. If subscriptions are received for more than 17.5 million units, the subscriptions will be reduced pro rata to 17.5 million units.
