Completion of $3,030,000 Private Placement
March 27, 2006
Release No. 06-07
SOUTHERN ARC MINERALS INC. (SA: TSX-V) is pleased to announce that it has closed its previously announced brokered private placement of 2,900,000 units and non-brokered private placement of 1,428,571 units, at a price of $0.70 per unit, for aggregate gross proceeds of $3,030,000. Haywood Securities Inc. ("Haywood") acted as underwriter for the brokered portion of the Offering. Each unit consists of one common share and one-half of one share purchase warrant. Each whole warrant is exercisable for a period of 24 months from the closing date into one (1) common share of the Company at a price of $1.00 per share, subject to acceleration of the expiry date.
On the brokered portion of the private placement, Haywood received a cash commission of $152,250 (7.5% of the gross proceeds) and 290,000 Underwriter's Warrants. Each Underwriter's Warrant is exercisable for a period of 24 months from the closing date into one (1) common share of the Company at a price of $0.70 per share.
On the non-brokered portion of the private placement, the Company has agreed to pay finders' fees to Blackmont Capital and Dundee Securities Corporation in the amounts of $28,875 and $15,750, respectively.
All of the securities are subject to a hold period expiring July 25, 2006.
The Company plans to use the net proceeds of the Offering for exploration and development expenditures on its mineral properties in Indonesia and for general working capital.
On behalf of the Board of
Southern Arc Minerals Inc.
Per: John G. Proust
President and CEO
"The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release."