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Val d’Or, Quebec J9P
2H1 Tel : 819
825-9311 Fax : |
TSX Venture SYMBOL:
May
10, 2010
Britannica Resources Corp.
Announces Financings
Britannica Resources Corp. (the “Company”) (BRR – TSX Venture) is pleased to announce it has engaged MGI Securities Inc. (the “Agent”) of Toronto, Ontario to arrange for brokered private placement financings of flow-through common shares (the “Flow-Through Shares”) and units (the “Units”) of the Company.
The private
placement of Flow-Through Shares will consist of an offering of up to 5,000,000
Flow-Through Shares of the Company at a price of $0.12 per Flow-Through Share
for aggregate gross proceeds of up to $600,000. Each Flow-Through Share will be
comprised of one common share of the Company which qualifies as a “flow-through
share” for tax purposes of the Income Tax
Act (Canada) (the “Tax Act”). The
proceeds from the sale of the Flow-Through Shares will be expended on certain exploration
projects on the Company’s
The private
placement of Units will consist of an offering of up to 7,000,000 Units at a
price of $0.09 per Unit for aggregate gross proceeds of up to $630,000. Each
Unit will be comprised of one common share in the capital of the Company (a “Common Share”) and one Common Share
purchase warrant (a “Warrant”). Each
Warrant will entitle the holder thereof to purchase one Common Share for a
period of two years after the closing of the offering at an exercise price of $0.15
per Common Share. The net proceeds from the sale of the Units will be used for
exploration on the Company’s
The Company shall pay the Agent an upfront retainer fee of $10,000 and a commission (the “Commission”) equal to 10% of the aggregate gross proceeds of the private placement financings. As additional compensation, the Agent will be issued agent’s warrants entitling the Agent to subscribe for that number of Units as is equal to 10% of the number of Units and Flow-Through Shares issued pursuant to the offering, exercisable for a period of 2 years following the closing of the offering at a price of $0.09 per Unit. The Agent retains the option, in its own and sole discretion, to elect the take all or any portion of the Commission in the form of Units at closing. The financings are scheduled to close prior to June 8, 2010, and are subject to the approval of the TSX Venture Exchange.
About Britannica Resources
Corp.
Britannica’s principal project, the McKenzie Break Gold Project, (a joint-venture with Northern Star Mining Corp. BRR 40% NSM 60%) is an advanced gold project with extensive exploration and development already completed by a major mining Company (Placer Dome). Significant historical data of grade exists, which the Company believes warrants further definition. These historical estimates should not be relied upon, as they were calculated prior to the enactment of NI 43-101 standards. Nevertheless, the Company does consider that these estimates are relevant, as they were conducted on strict parameters similar to current standards for quality assurance (“QA”) and quality control (“QC”) procedures.
Construction of a decline for underground exploration to the initial targeted zone, (the “Murray Zone”, a near surface mineralized zone) was completed in mid-April. Initial bulk sampling is currently underway and will test this zone beginning at a vertical depth of 20 meters to approximately 90 meters from surface, while decline construction also continues towards the deeper lying “Zone 4”. All gold mineralized material encountered during the development is currently being stockpiled on surface and is expected to be transported (approximately 35 Km’s) for milling at existing milling facilities within the coming months.
About MGI Securities Inc.
MGI Securities
Inc. is an integrated Canadian investment dealer offering professional wealth
management solutions for individual investors, a comprehensive range of
specialized services for institutional investors, and corporate finance
advisory services for issuers, including mergers and acquisitions, equity
underwritings, corporate restructuring, structured financings, market research,
and business valuation services. MGI is based in
For further information:
John A. McMahon
Investment Banker,
MGI Securities
(416) 777-5178
Please visit Britannica Resources Corp. web site (www.brrgold.com ) for more information about
the Company.
ON BEHALF OF THE BOARD
“
President
FOR FURTHER INFORMATION PLEASE CONTACT: Britannica Resources Corp.
(TEL)- (819) 825-9311, (FAX)-(819) 825-1199
Email: info@brrgold.com
Website: www.brrgold.com
This
press release contains certain “Forward-Looking Statements” within the meaning
of Section 21E of the United States Security Exchange Act of 1934, and involves
a number of risks and uncertainties. Important factors that could cause
actual results to differ materially from the Company’s expectations are
disclosed in the Company’s documents filed from time to time with the TSX
Venture Exchange and the British Columbia Securities Commission. All
statements, other than of historical fact, included herein are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and actual results
and future events could differ materially from those anticipated in such
statements. Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.