Canadian Orebodies Inc.
TSX VENTURE : CO

Canadian Orebodies Inc.

April 17, 2008 16:07 ET

Orebodies Announces Private Placement

TORONTO, ONTARIO--(Marketwire - April 17, 2008) - Canadian Orebodies Inc. ("the Company") (TSX VENTURE:CO) announces that it has engaged Pope & Company Limited (the "Agent") of Toronto to act as agent to sell, on a best efforts basis, by way of private placement, units of securities of the Company for maximum gross proceeds of $3,000,000 (the "Offering").

The Offering will be comprised of units ("Units") and flow-through units ("Flow-Through Units"). The Units will be priced at $0.25 per Unit with each Unit consisting of one non "flow-through" common share ("Common Share") and one half of one Common Share purchase warrant (each such whole common share purchase warrant being referred to herein as a "Warrant"). Each Warrant will be exercisable into one Common Share for a period of 24 months from closing at an exercise price of $0.40 per share during the 12 month period beginning on the date of the closing of the Offering ("Year 1") and $0.50 for the 12 month period thereafter ("Year 2"). The Flow-Through Units will be priced at $0.30 per Flow-Through Unit with each Flow-Through Unit consisting of one Common Share issued on a "flow-through" basis and one half of one Warrant. The expiry date of the Warrants may be accelerated, at the option of the Company, if the closing price of the Common Shares on the TSX Venture Exchange exceeds $0.50 in Year 1 or $0.60 in Year 2 for a period of 20 consecutive trading days commencing on the date that is four months and one day after the closing of the Offering by giving notice to the holders thereof, in which case the Warrants will expire on the twentieth business day after the date on which such notice is given by the Company.

The Company will pay the Agent a cash commission equal to 8% of the aggregate gross proceeds of the Offering and issue to the Agent non-transferable broker warrants to acquire that number of units of securities of the Company ("Broker Units") equal to 10% of the aggregate number of Units and Flow-Through Units purchased through the Offering (the "Unit Broker Warrants"). Each Unit Broker Warrant will be exercisable into one Broker Unit at the Unit issue price at any time prior to the date that is 24 months from the closing of the Offering.

The net proceeds of the Offering will be used for the exploration of the Company's mineral projects and for general working capital purposes.

The Offering is expected to close on or about April 30, 2008 and is subject to the approval of the TSX Venture Exchange.

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

Contact Information

  • Canadian Orebodies Inc.
    Gordon McKinnon
    President & CEO
    (705) 268-9000