BALTIC RESOURCES INC.
TSX VENTURE : BLR

BALTIC RESOURCES INC.

November 07, 2007 09:52 ET

PhosCan Announces $16 Million Bought Deal Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Nov. 7, 2007) -

NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

PhosCan Chemical Corp. (TSX VENTURE:FOS) ("PhosCan") is pleased to announce that it has entered into an agreement with Wellington West Capital Markets Inc., on behalf of a syndicate of underwriters (collectively, the "Underwriters"), to raise Cdn$16,005,000 by way of a bought deal private placement (the "Offering"). Under the agreement, the Underwriters have agreed to purchase 14,550,000 common shares of PhosCan ("Common Shares") from treasury, at a price of Cdn$1.10 per Common Share for gross proceeds of Cdn$16,005,000.

PhosCan has granted the Underwriters an over-allotment option to purchase up to an additional 1,500,000 Common Shares at the issue price for additional gross proceeds of up to Cdn$1,650,000. The option is exercisable at any time up to 15 days after closing of the Offering.

Closing of the Offering is expected to occur on or about November 20, 2007 and is subject to certain conditions, including receipt of all necessary securities regulatory approvals (including the approval of the TSX Venture Exchange) and execution and delivery of a definitive underwriting agreement and related documentation.

The proceeds from the Offering will be used for advancement of the Martison Phosphate Project, working capital and general corporate purposes.

PhosCan will pay a cash fee to the Underwriters equal to 6% of the gross proceeds of the Offering. In addition, the Underwriters will receive non-transferable compensation warrants ("Compensation Warrants") exercisable for such number of Common Shares as is equal to 6% of the number of Common Shares issued pursuant to the Offering. The Compensation Warrants will be exercisable at a price of Cdn$1.10 per share for a period of 12 months after the closing of the Offering.

PhosCan Chemical Corp. is engaged in the advancement of the Martison Phosphate Project located near Hearst, Ontario. The Project entails the development of a phosphoric acid plant utilizing the Martison phosphate deposit and sulphuric acid from the Ontario base-metal smelters. Phosphate concentrate and sulphuric acid are the two primary inputs in the production of phosphoric acid. The project is strategically positioned in proximity to target markets with access to excellent infrastructure including rail, power, labour and an abundant supply of sulphuric acid. The phosphoric acid produced will be used as feedstock for the production of higher valued products in the fertilizer and industrial markets.

The securities being 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 in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.

Contact Information

  • PhosCan Chemical Corp.
    Stephen Case
    President & CEO
    (416) 972-9222