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906-1112 W. Pender St.
Vancouver, B.C. V6E 2S1
Telephone: 604-681-8600
Toll Free: 1-866-FPM-8601
Fax: 604-681-8799
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| |   Tue Apr 6, 2010
First Point Announces 50% Increase in Private Placement
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| | This news release, required by applicable Canadian laws, is not for distribution to U.S. newswire services or for dissemination in the U.S.
First Point Minerals Corp. (FPX-TSX.V) ("First Point" or, the "Company") announces that in response to very strong investor interest, the private placement financing announced on March 29, 2010 has been increased by 50% to $7.5 million. The offering will now be for up to 15,000,000 units at a price of $0.50 per unit, for gross proceeds of up to $7.5 million. The Company expects that the financing will be fully subscribed.
"We are very pleased with this strong support" said Peter Bradshaw, President and CEO. "The additional funding will allow us to greatly accelerate the exploration of the six nickel alloy properties in North America in which First Point holds 100% interests, expand our international search for the same class of deposit elsewhere in the world and also increase the size of the drilling programme on our Corralitos gold programme in Mexico. Drilling will commence at Corralitos at the end of this month"
As announced in the March 29th press release, the private placement will consist of one common share and one-half of a non-transferable share purchase warrant. Each whole warrant entitles the holder to purchase, for a period of two years from the closing of the private placement (the "Closing"), one common share at a price of $0.65 per share for the first year and $0.80 per share for the second year.
The warrants will contain a provision that will enable First Point to force exercise of the warrants if, during the term of any unexercised warrant commencing four months after the Closing, the common shares of the Company trade on any exchange for a period of 20 consecutive trading days at a price of $1.10 per share or greater.
Cliffs Natural Resources ("Cliffs") has stated its intention to subscribe for 15% of the issue as is its right under the Decar property option agreement, as previously announced.
First Point may pay a finder's fee or commission and issue non-transferable broker warrants in connection with the private placement in accordance with policies of the TSX Venture Exchange.
Several insiders of First Point will be participating in the private placement. Their participation will be on the same terms as arm's length investors, and such insiders' shareholdings in the Company will increase as a result of any such participation. The private placement may close before 21 days following the filing of the material change report regarding this announcement if management determines it to be necessary or desirable for sound business reasons.
Closing, which is subject to acceptance of the TSX Venture Exchange, is expected to occur on or about April 19, 2010. The units issued by way of private placement exemptions from prospectus requirements will be subject to a four-month hold.
First Point Minerals Corp. is a Canadian base and precious metal exploration company. For more information, please view the Company's website at www.firstpointminerals.com or phone Peter Bradshaw, President and CEO, or Ron Britten, Vice-President of Exploration, at (604) 681-8600.
On behalf of First Point Minerals Corp.
"Peter Bradshaw"
Peter Bradshaw, Ph.D., P.Eng., President & CEO - TSX Venture Exchange: FPX
Suite 906 -- 1112 West Pender Street
Vancouver, BC Canada V6E 2S1
Tel: 604/681-8600 Fax: 604/681-8799
e-mail firstpoint@firstpointminerals.com
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release
This press release, required by applicable Canadian laws, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements. |
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| | You can view the Next News Releases item: Mon Apr 26, 2010, First Point Closes $7,500,000 Non-brokered Private Placement
You can view the Previous News Releases item: Mon Mar 29, 2010, First Point Proposes a $5 Million Private Placement Financing
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