PhosCan Chemical Corp.
TSX VENTURE : FOS

PhosCan Chemical Corp.

November 20, 2007 10:50 ET

PhosCan Closes $17.6 Million Bought Deal Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Nov. 20, 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 completed the private placement financing originally announced on November 6, 2007. PhosCan issued 16,050,000 common shares of PhosCan ("Common Shares") at a price of Cdn$1.10 per Common Share to raise gross proceeds of Cdn$17,655,000, including additional proceeds of Cdn$1,650,000 for the 1,500,000 Common Shares purchased pursuant to the exercise in full of the underwriters' over-allotment option (the "Offering").

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

Wellington West Capital Markets Inc. ("WWCM") acted as book-runner and lead underwriter on behalf of a syndicate of underwriters including Cormark Securities Inc. and TD Securities Inc. (together with WWCM, the "Underwriters"). PhosCan paid a cash fee to the Underwriters equal to 6% of the gross proceeds of the Offering. In addition, the Underwriters received 963,000 non-transferable compensation warrants ("Compensation Warrants") each of which is exercisable for one Common Share at a price of Cdn$1.10 per share until November 20, 2008.

The Common Shares issued pursuant to the Offering, and the Common Shares issueable upon the exercise of the Compensation Warrants, are subject to a statutory hold period which expires March 21, 2008.

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.

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

Contact Information

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