Linear Metals Corporation
TSX VENTURE : LRM

Linear Metals Corporation

October 22, 2007 08:30 ET

Linear Metals Corporation Announces $7,020,000 Flow Through Share Offering

HALIFAX, NOVA SCOTIA--(Marketwire - Oct. 22, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Linear Metals Corporation ("Linear Metals" or the "Company")(TSX VENTURE:LRM) is pleased to announce that it has entered into an agreement with a syndicate of agents led by Haywood Securities Inc. and including Cormark Securities Inc. and GMP Securities Ltd. (the "Agents") in connection with the proposed private placement of approximately 3,900,000 flow through shares (the "Flow Through Shares") of the Company at a price of C$1.80 per Flow Through Share for aggregate gross proceeds of up to C$7,020,000 (the "Offering").

Net proceeds of the Offering will be used to advance the exploration of the Company's Canadian properties and specifically the KM 61 Molybdenum Project.

The Offering is scheduled to close on or about November 6, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange ("TSX-V").

In connection with the private placement, the Agents would receive a commission equal to 5.5% of the gross proceeds of the Offering. As additional compensation, the Agents will be issued compensation options entitling the Agents to purchase that number of Common Shares as is equal to 6.0% of the aggregate number of Flow Through Shares issued by the Company under the Offering with an exercise price set at the lowest price allowable by the TSX-V, provided the exercise price is no lower than the issue price of Flow Through Shares under the Offering. Such options shall have a term of eighteen (18) months from the Closing Date.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Linear Metals Corporation
    Wade K. Dawe
    Chief Executive Officer
    (902) 422-1421