Superior Copper Corporation announced that it intends to complete a best efforts non brokered private placement financing of up to 6,000,000 hard dollar units at a price of USD 0.10 per HD Unit and up to 10,000,000 flow through units at a price of USD 0.12 per FT Unit for gross proceeds of up to USD 1,800,000.
Each HD Unit will be comprised of one common share and one half common share purchase warrant with each HD Warrant being exercisable for one common share of the Corporation at an exercise price of USD 0.15 for a period of 24 months following the closing date of the financing.Each FT Unit will consist of one flow through"common share and one half common share purchase warrant with each FT Warrant being exercisable for one common share of the Company at an exercise price of USD 0.20 for a period of 24 months following the closing date of the financing.
Where the closing price of the common shares equals or exceeds a weighted average price of USD 0.25 and USD 0.30 for 15 consecutive trading days following the date that is four months and one day after the closing date the Corporation shall have the right to require conversion of the HD Warrants and FT Warrants as the case may be at the exercise price therefore upon 30 days'notice.
The proceeds of the Offering will be used for exploration,property acquisition and general working capital purposes.The Corporation will ensure that the proceeds received from the amount allocated to the Flow Through Shares forming part of the Flow Through Units sold will be used to incur expenses which qualify as Canadian Exploration Expenses for purposes of the Income Tax Act(Canada)and will renounce such expenses with an effective date of no later than December 31st 2013.
Superior Copper intends to close the Offering on or around December 21st 2012.The securities issued pursuant to the Offering will be subject to a statutory four month and one day hold period.The Offering is subject to certain conditions including but not limited to,the receipt of all necessary approvals,including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.
