Radar Acquisitions Corp.

Radar Acquisitions Corp.

March 07, 2008 09:00 ET

Radar Acquisitions Re-Prices and Re-Allocates $3.0 Million Private Placement

CALGARY, ALBERTA--(Marketwire - March 7, 2008) - Mr. Timothy Bergen, President and CEO of Radar Acquisitions Corp. ("Radar") (TSX VENTURE:RAC), announces that due to a significant change to the original use-of-proceeds as stated in a press release dated January 9, 2008, Radar has decided to re-price and re-allocate its offering from $0.28 per unit to $0.22 per unit for gross proceeds of up to $3.0 million (approximately 13,636,364 units). The purchase of D&E Mining, LLC, a producing coal mine in Alabama, USA, will now be the primary use of proceeds.

The acquisition of D&E Mining, LLC, by RPS Fuels, LLC (a Radar/New Energy USA, LLC, joint venture) was announced January 29, 2008. Production at the D&E Mine is currently 4,000 to 4,500 tons of coal per month and RPS Fuels, LLC, anticipates increasing this to 11,000 tons per month in the near-term. Secondary uses of the proceeds of the private placement include furthering Radar's commitment to the joint venture with New Energy USA, LLC, a reservation for working capital and general operating expenses. The completion of the private placement and the acquisition of D&E Mining are subject to regulatory approval.

"We are extremely pleased to be in the position to acquire a producing asset that will allow our shareholders to immediately leverage the recent strong increases in coal prices," said Mr. Bergen. "Director Linden Swensen's 25 plus years in coal mining will be a major factor in allowing us to derive maximum value from this site. He has already been instrumental in assisting us with finalizing additional off-take agreements."

Each unit of the private placement will consist of one common share and one half of one common share purchase warrant. Each whole warrant is exercisable at $0.38 per common share for a period of two years from the closing date. A finder's fee of seven percent of the gross proceeds of the private placement may be paid on all or any portion of this private placement. Additionally, a finder's option to purchase up to eight percent of the number of units sold may be issued in respect of this private placement. The finder's option is exercisable into units on the same terms as the financing for a period of two years from the date of issuance of the option. It is not anticipated that any new insiders will be created, or that any change of control will occur, as a result of the private placement.

Radar has retained Ascenta Finance Corp. to act as its non-exclusive financial services agent in respect of the private placement.

About Radar Acquisitions Corp.

Radar is a diversified natural resource development company focused on growth through the acquisition, exploration and development of resources and resource related technologies. Radar is focused on a joint venture agreement it has with New Energy USA, LLC, to develop engineered solid fuel products (Re-Fuel™) using a combination of coal slurry pond waste and biomass.

Re-Fuel™ will benefit the environment through the reclamation of coal slurry and other bio-refuse in the production phase and cleaner stack and ash emissions in the power generation phase. Production of Re-Fuel can qualify the producing joint venture company for a variety of tax credits while providing coal waste owners/suppliers with a significant benefit by decreasing site reclamation costs. Users of Re-Fuel™ will benefit from a competitively priced, cleaner, more efficient product that may also make them eligible for substantial carbon credits.

All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the company's documents filed from time to time with the TSX Venture Exchange, the Alberta Securities Commission, and the British Columbia Securities Commission.

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

Contact Information

  • Radar Acquisitions Corp. - Corporate Head Office
    Timothy J. Bergen
    (403) 262-3797 or Toll Free: 1-877-262-5888
    Email: tbergen@radar.ab.ca
    Ascenta Capital Partners Inc.
    Bryson Goodwin
    Investor Relations
    (604) 684-4743 ext 239 or Toll Free: 1-866-684-4209
    Email: bryson@ascentacapital.com