PhosCan Chemical Corp.
TSX VENTURE : FOS

PhosCan Chemical Corp.

August 14, 2007 11:54 ET

PhosCan Closes Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Aug. 14, 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 July 31, 2007. Phoscan issued 17,710,000 common shares at a price of $0.90 per share to raise gross proceeds of $15,939,000 (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 Cormark Securities Inc. and TD Securities Inc. (together with WWCM, the "Agents") acted as co-lead agents on a best efforts basis in connection with the Offering. PhosCan paid a cash fee to the Agents equal to 6% of the gross proceeds of the Offering. In addition, the Agents received 1,062,600 non-transferable compensation warrants ("Compensation Warrants") each of which is exercisable for one common share at a price of $0.90 per share until August 14, 2008.

The common shares and Compensation Warrants issued pursuant to the Offering, and the common shares issued pursuant to the exercise of the Compensation Warrants, are subject to a statutory hold period which expires December 15, 2007.

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 that provide both an economic and logistical advantage.

The securities being offered have not been and will not be 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) 960-8884