PhosCan Chemical Corp.
TSX VENTURE : FOS

PhosCan Chemical Corp.

March 02, 2007 13:24 ET

PhosCan Closes Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - March 2, 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 February 12, 2007. PhosCan issued 4,575,000 common shares at a price of $0.35 per share to raise gross proceeds of $1,601,250 (the "Offering").

The proceeds from the Offering will be used for business development, working capital and general corporate purposes.

Wellington West Capital Markets Inc. (the "Agent") acted as agent on a best efforts basis in connection with the offering. Phoscan paid a cash fee to the Agent equal to 7% of the gross proceeds of the Offering. In addition, the Agent received 320,250 non-transferable compensation warrants, each of which is exercisable for one common share at a price of $0.35 per share until June 2, 2008.

PhosCan Chemical Corp. is currently conducting a pre-feasibility on 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 ready access to 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 phosphate markets.

The common shares and compensation warrants issued pursuant to the Offering, and the common shares issuable upon exercise of the compensation warrants, are subject to a statutory hold period which expires July 3, 2007. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of U.S. 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.

INFORMATION IN THIS NEWS RELEASE THAT IS NOT CURRENT OR HISTORICAL FACTUAL INFORMATION MAY CONSTITUTE FORWARD-LOOKING INFORMATION OR STATEMENTS WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND APPLICABLE CANADIAN SECURITIES LEGISLATION. IMPLICIT IN THIS INFORMATION, PARTICULARLY IN RESPECT OF STATEMENTS AS TO FUTURE OPERATING RESULTS AND ECONOMIC PERFORMANCE OF THE COMPANY, AND RESOURCES AND RESERVES AT THE COMPANY'S MINERAL PROJECTS, ARE ASSUMPTIONS REGARDING PROJECTED REVENUE AND EXPENSE, COMMODITY PRICES, AND MINING COSTS. THESE ASSUMPTIONS, ALTHOUGH CONSIDERED REASONABLE BY THE COMPANY AT THE TIME OF PREPARATION, MAY PROVE TO BE INCORRECT. READERS ARE CAUTIONED THAT ACTUAL RESULTS ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES, INCLUDING RISKS RELATING TO GENERAL ECONOMIC CONDITIONS AND MINING OPERATIONS, AND COULD DIFFER MATERIALLY FROM WHAT IS CURRENTLY EXPECTED. THE COMPANY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

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) 960-8884