Evanachan Limited

December 30, 2010 13:00 ET

Evanachan Limited Files Early Warning Report in Connection With Private Placement in Lexam Explorations Inc.

TORONTO, ONTARIO--(Marketwire - Dec. 30, 2010) - Evanachan Limited ("Evanachan"), an entity wholly owned by Robert R. McEwen, Chairman and CEO of Lexam Explorations Inc. ("Lexam"), has subscribed, by way of a private placement for 4,960,318 units (the "Units") of Lexam at a price of $1.008 per Unit for an aggregate amount of $5,000,000. Each Unit consists of one Lexam common share ("Share") and one-half of one Lexam purchase share warrant, with each full warrant exercisable at an exercise price of $2.10 per Lexam common share for a period of two years following the closing of the private placement (the "Transaction"). The Common Shares purchased represent 9.3% of the number of currently outstanding Common Shares of Lexam. The Shares were issued from Lexam's treasury. The Transaction was subject to Lexam shareholder and Ontario Superior Court of Justice approval.

Evanachan entered into the Transaction for investment purposes and may increase or reduce its investment in Lexam according to market conditions or other relevant factors.

Prior to the closing of the Transaction, Evanachan held 20,102,363 Common Shares (41.4%) whereas Evanachan along with certain related parties held 23,963,474 Shares (49.4%). Upon completion of the transaction Evanachan will hold 25,062,681 Shares (46.9%), whereas Evanachan along with certain related parties will hold 28,923,792 Shares (54.1%).

A copy of the early warning report filed in connection with the Transaction will be made available on SEDAR (www.sedar.com).

Contact Information

  • Evanachan Limited
    Robert R. McEwen
    President and Director
    (647) 258-0395