Shear Minerals Ltd. Closes Additional $80,000 Private Placement
January 6, 2010
EDMONTON, Alberta - Shear Minerals Ltd. (?Shear?) (SRM:TSXV) announced that on December 31, 2009 it effected a final closing of its non-brokered private placement with the sale of 1,230,769 units (?FT Units?) at a price of $0.065 per FT Unit for gross proceeds of $80,000. Shear had effected a first closing on December 30, 2009 and the total gross proceeds from both closings amounted to $1,084,566.16.
The FT Units were sold to a qualified purchaser in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. Each FT Unit consisted of one Common Share to be issued as a ?flow through share? (?FT Share?) and one-half of one non-transferable share purchase warrant (?Warrant?). Each whole Warrant entitles the holder to acquire an additional Common Share at a price of $0.12 at any time within 12 months of issuance. The proceeds from the sale of the FT Shares will be used to incur expenditures which qualify as Canadian Exploration Expenses primarily on Shear?s Canadian Diamond and gold projects.
In connection with the sale of the 1,230,769 FT Units Shear paid an arm?s length finder the sum of $5,600 (representing 7% of the gross proceeds received for such FT Units) and granted non-transferable share purchase warrants (?Finder?s Warrants?) to acquire 86,153 Common Shares (representing 7% of such FT Units). The Finder?s Warrants are exercisable at a price of $0.10 per Common Share at anytime until December 31, 2010.
The FT Shares and Warrants comprising the FT Units, the Finder?s Warrants and Common Shares issuable upon exercise of the Warrants and Finder?s Warrants are subject to a restricted period which expires on May 1, 2010.
Shear is a Canadian-based exploration company focused on Diamond exploration in the Canadian North, where it explores in established Diamond districts and has discovered new ones. Shear currently has a portfolio of eight Diamond projects, seven of which are drill-ready. Shear has advanced its flagship (62.3% ownership) Churchill Diamond Project from a conceptual idea to an expanding Diamond district hosting 88 kimberlites in the Kivalliq region of Nunavut.
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Shear?s expectations are in its documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. Shear disclaims any intention or obligation to revise or update such statements