By Sheri Kasprzak
Atlanta, June 8 - Fortuna Ventures Inc. said it plans to raise C$1.05 million in a private placement as part of its acquisition of the Caylloma silver mine in Peru.
The offering includes up to 1.5 million units at C$0.70 each.
The units are comprised of one share and one warrant. The warrants are exercisable at C$0.75 each for one year.
Fortuna announced Wednesday that it has signed an agreement to buy the Caylloma mine and will change its name to Fortuna Silver Mines.
The company plans to pay for the US$7.55 million acquisition with US$100,000 at closing; the issuance of a US$2.9 million convertible promissory note at closing; US$4.5 million payable on the first anniversary of closing; and with 10.803% of the company's outstanding capital on a diluted basis. The company plans to conduct an additional US$10 million financing to pay the deferred amount of the acquisition and to provide working capital once the mine is acquired.
The acquisition and the private placement are expected to close by the end of June.
Based in Vancouver, B.C., Fortuna is a gold and silver exploration company.
| Issuer: | Fortuna Ventures Inc.
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| Issue: | Units of one share and one warrant
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| Amount: | C$1.05 million (maximum)
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| Units: | 1.5 million (maximum)
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| Price: | C$0.70
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| Warrants: | One warrant per unit
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| Warrant expiration: | One year
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| Warrant strike price: | C$0.75
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| Pricing date: | June 8
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| Stock price: | C$0.345 at close Dec. 22 (last trade)
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