June 14, 2007
Dynamite Resources Ltd. (TSX-V:DNR), through its subsidiary, Tau Finance Inc., closed its private placement financing of 56,250,000 subscription receipts at a price of $0.80 per subscription receipt for gross proceeds of $45 million. Dynamite intends to use the net proceeds from the offering to acquire Tau Mining Limited (UK), to incur exploration expenditures and for general corporate purposes. The gross proceeds of the offering, less the expenses of the underwriters, will be held in escrow and will be released upon satisfaction of certain conditions. Upon satisfaction of the escrow release conditions, each subscription receipt will be automatically converted into one unit, each unit being comprised of one common share of Tau Finance and one common share purchase warrant. Each warrant will be exercisable for one common share of Tau Finance at a price of $1.00 per common share until two years following satisfaction of the escrow release conditions. A syndicate of underwriters led by Orion Securities Inc. and including GMP Securities L.P and Cormark Securities Inc. acted in connection with the offering.
Wildeboer Dellelce LLP acted for the Underwriters with a team that included Robert Wortzman, Al Wiens and George Nehme (corporate/securities).