$2.5 Million Private Placement Arranged With Powerone Capital Markets Limited
East West Resource Corporation (TSX-V: EWR) is pleased to announce that it has entered into an agreement with PowerOne Capital Markets Limited pursuant to which PowerOne has agreed to offer on a best-efforts private placement basis up to 13,333,334 units of the company at 15 cents per unit and up to 2,941,177 flow-through units at 17 cents per unit for total gross proceeds of a maximum of $2.5-million.
Each unit consists of one common share of the company and one common share purchase warrant. Each common share purchase warrant is exercisable for one common share of the company at a price of 17 cents for a period of 24 months after the closing of the offering.
Each flow-through unit consists of one flow-through common share of the company and one-half of one flow-through common share purchase warrant. Each whole flow-through common share purchase warrant is exercisable for one non-flow-through common share of the company at a price of 22 cents for a period of 24 months after the closing of the offering.
PowerOne will receive a commission equal to 8.0 per cent of the gross proceeds from the sale of the offering, payable in cash, in Units or in any combination of cash and units. PowerOne will also be granted broker units equal in number to 10 per cent of the number of units and flow-through units sold under the offering at 15 cents per broker unit. Each broker unit will have the same characteristics as the units in the offering.
The proceeds of this private placement will be used to advance the Marshall Lake project, along with other base-metal properties in North Western Ontario, and for general working capital purposes
"We are pleased to be working with PowerOne who have developed a reputation and track record in financing international mining ventures", says Blake Colvin, President
ON BEHALF OF THE BOARD OF DIRECTORS
Blake Colvin, Director