Southern Arc Purchases Additional Shares and Warrants in Eagle Hill Exploration
08 April 2014 - 8:57PM
Marketwired
Southern Arc Purchases Additional Shares and Warrants in Eagle Hill
Exploration
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 8, 2014) -
Southern Arc Minerals (TSX-VENTURE:SA)(OTCQX:SOACF) ("Southern
Arc") today announced that the Company has purchased additional
shares and warrants in Eagle Hill Exploration Corporation ("Eagle
Hill") (TSX-VENTURE:EAG)(OTCQX:EHECF). Eagle Hill is a Canadian
mineral exploration company focused on the exploration and
development of the high-grade Windfall Lake Gold Deposit, located
between Val-d'Or and Chibougamau in Quebec.
As part of Eagle Hill's non-brokered private placement of up to
$3.5 million (the "Offering") announced on March 28, 2014, Southern
Arc has purchased 7,518,797 million units in a structured
transaction involving the issuance of flow-through units to
investors, their donation to charity and subsequent resale by
charities to Southern Arc. Southern Arc has paid $0.07 per unit for
an investment of $526,316. Each unit consists of one common share
(a "Share") of Eagle Hill and one share purchase warrant (a
"Warrant") of Eagle Hill. Each Warrant entitles Southern Arc to
acquire one Share at a price of $0.10 until April 8, 2016. Proceeds
from the flow-through portion of the Offering will be used for
exploration expenses at Eagle Hill's Windfall Lake Gold
Project.
Southern Arc has also agreed to participate in the "hard
dollars" portion of Eagle Hill's financing and has agreed to
purchase approximately 3.6 million units directly from Eagle Hill.
Southern Arc will pay an additional $250,000 for the "hard dollars"
units for a total investment, including the flow-through units, of
$776,316. Proceeds from the hard dollars portion of the Offering
will be used for Eagle Hill's general working capital.
In August 2013, Southern Arc invested $7,324,050 to acquire
97,654,000 shares of Eagle Hill and 48,827,000 warrants of Eagle
Hill exercisable at a price of $0.10 until August 14, 2017. With
the flow-through portion of the Offering complete, Southern Arc
currently owns 105,172,797 shares and 56,345,797 warrants of Eagle
Hill. Following closing of the full Offering, it is anticipated
that Southern Arc will hold 108,744,226 Eagle Hill shares,
representing 23.9% of Eagle Hill's issued and outstanding shares.
It is anticipated that Southern Arc will also hold 59,917,226 Eagle
Hill warrants with an average exercise price of $0.10 which, if all
Eagle Hill options and warrants are exercised, would represent a
27.6% interest in Eagle Hill on a fully diluted basis. Dundee
Corporation ("Dundee") (TSX: DC.A) is also participating in the
Offering and has agreed to purchase approximately 10.7 million
units. Upon closing of the Offering, it is anticipated that Dundee
will own 28.9% of Eagle Hill on an undiluted basis, and 28.3% on a
fully diluted basis.
On behalf of the Board of Southern Arc Minerals Inc.
John Proust, Chairman & Chief Executive Officer
About Southern Arc
Southern Arc Minerals Inc. is a Canadian mineral exploration
company focused on gold and copper-gold exploration. The Company is
advancing two properties in Indonesia: West Lombok, a
resource-stage property with several gold-rich copper porphyry and
epithermal gold vein prospects, and East Elang, a grassroots
exploration property that will be advanced in partnership with Vale
International SA. Southern Arc also owns 25% of Eagle Hill
Exploration, which owns the high-grade Windfall Lake Gold Project
in Quebec, Canada. More information is available at
www.southernarcminerals.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-looking
Statements
This document contains certain forward-looking information
and forward-looking statements within the meaning of applicable
securities legislation (collectively "forward-looking statements").
The use of any of the words "has agreed", "will", "look forward",
and similar expressions are intended to identify forward-looking
statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. Such forward-looking statements should
not be unduly relied upon. This document contains forward-looking
statements and assumptions pertaining to the ability of Eagle Hill
to close the Offering; the granting of regulatory approval; and the
timing of receipt of regulatory approvals. Actual results achieved
may vary from the information provided herein as a result of
numerous known and unknown risks and uncertainties and other
factors, including uncertainty related to market conditions that
prevent Eagle Hill from closing the Offering on acceptable terms or
at all; and global financial market events that cause significant
volatility. Readers are cautioned that the foregoing list of
factors is not exhaustive. The forward-looking statements contained
in the document are expressly qualified by this cautionary
statement. These statements speak only as of the date of this
document and the Company does not undertake to update any
forward-looking statements that are contained in this document,
except in accordance with applicable securities laws.
Southern Arc Minerals Inc.Rhylin BailieVice President,
Communications & Investor Relations604-676-5241 or North
American Toll-free:
1-888-676-5241info@southernarcminerals.comwww.southernarcminerals.com