Lynden Ventures Ltd.
TSX VENTURE : LVL

Lynden Ventures Ltd.

July 16, 2007 09:02 ET

Lynden Closes Financings Totalling $15.3 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2007) - Lynden Ventures Ltd. (TSX VENTURE:LVL), announces the closing of two non-brokered private placements totalling $15,348,000.

In the first private placement, Lynden raised $10,000,000 through the issue of 12,500,000 units at a price of $0.80 per unit. Each unit is comprised of one common share and one half of a share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of $1.25 until July 9, 2009. The shares issued pursuant to the first private placement, and any shares to be issued on exercise of the warrants are subject to a hold period expiring November 9, 2007.

In the second private placement, the company raised $5,348,000, with Macquarie Bank Limited as placee. These funds were raised by the company issuing a total of 6,521,952 units at a price of $0.82 per unit. Each unit is comprised of one common share and one half of a share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at a price of $1.25. The warrant will have a term of four years, expiring November 12, 2011 if Lynden becomes a TSX Venture Exchange Tier 1 issuer, otherwise the warrants will be for a term of two years, expiring November 12, 2009. However, if the trading price of the company's common shares is at least $2.50 on 20 consecutive days, the warrants will be deemed to be exercised on the 20th day, subject to receipt of required regulatory approvals, if any. The shares issued pursuant to the second private placement, and any shares to be issued on exercise of the warrants are subject to a hold period expiring November 12, 2007.

Finder's fees and commissions of $400, 629,640 common shares, 311,500 half share purchase warrants with the same terms as those issued under the first private placement and 318,140 half share purchase warrants with the same terms as those issued under the second private placement, have been paid as consideration for arranging portions of the private placements. The company intends to pay additional finder's fees and commissions on the first private placement upon receipt of TSX Venture Exchange approval.

The funds raised from the private placements will be principally used to fund the acquisition of a 25% working interest in the Southern Prospect Area and to fund operations on the Southern and Northern Prospect Areas of the Paradox Basin Project, Utah.

Macquarie Bank Limited and, through finders' fees, its affiliate Macquarie Securities (U.S.A. Inc.) (together, "Macquarie") has, through the private placement acquired ownership of 6,521,952 units of Lynden. Prior to the acquisition, Macquarie did not own any securities of Lynden. After the acquisition of the units, Macquarie is deemed to own 10,260,138 common shares of Lynden, representing approximately 21.3% of Lynden's issued and outstanding common shares on a partially diluted basis.

The shares and warrants were acquired by Macquarie for investment purposes and, depending on market and other conditions, Macquarie may increase or decrease its ownership of, or control or direction over, securities of Lynden. To contact Macquarie, please call (212) 231 1710.

In connection with the acquisition, Macquarie and Lynden entered into a registration rights agreement granting Macquarie certain rights to cause Lynden to qualify Macquarie's common shares for distribution to the public in Canada, or the U.S., in the event Lynden has previously qualified securities for distribution to the public in the U.S.

ON BEHALF OF THE BOARD OF DIRECTORS

LYNDEN VENTURES LTD.

Colin Watt, President and CEO

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

Contact Information

  • Lynden Ventures Ltd.
    Colin Watt
    President and CEO
    (604) 629-2991
    (604) 602-9311 (FAX)