VANCOUVER B.C. / ACCESSWIRE / April 17, 2014 / Tower Resources Ltd. ("Tower" or the "Company") is pleased to announce that, further to its news release of April 1, 2014, the Company has completed the second and final tranche of its private placement offering (the "Offering") of units of the Company (the "Units") at a price of five cents per Unit.
Under the Offering, the Company sold an additional 1,080,000 Units, combined with 13,920,000 Units from its first tranche for an aggregate total of 15,000,000 Units for gross proceeds of $750,000.
Each Unit consists of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire an additional common share of the Company at a price of $0.10 per share for a period of 24 months expiring April 1, 2016. Upon completion of the four month statutory hold period, the Company may accelerate the expiry of the Warrants if the twenty-day volume-weighted average trading price of the Company's common shares is greater than $0.20 provided that (a) the Company gives notice of the same in writing to the holder of the Warrants, and (b) the accelerated expiry date is a date which is not less than 30 calendar days after the date of such notice.
The net proceeds from the Offering will be used for general working capital purposes.
All of the securities issued under the second tranche of the Offering are subject to a statutory hold period until August 17th, 2014 in accordance with applicable Canadian securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
For further information contact:
Mark Vanry - Director, CEO & President
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement Caution
This news release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation. Such statements include, without limitation, statements regarding the proposed use of proceeds from the Offering. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change, except as required by law. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, the Company's inability to secure subscriptions from investors to complete the proposed financing in whole or in part, a management decision to change the use of proceeds based on changing circumstances, the volatility of metals prices, volatility in the market for the Company's securities and market for equities generally, and other risks associated with mineral exploration. The reader is urged to refer to the Company's public disclosure which is available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
SOURCE: Tower Resources Ltd.