Southern Arc Minerals Inc. Update On Strategic Investment In Canada Nickel Corp.
Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce that Canada Nickel Corp. ("Canada Nickel”) has completed its founders round seed financing for proceeds of $8.65 million. This includes Southern Arc's purchase of 15.3 million common shares for proceeds of $5.355 million. Southern Arc currently owns 15.3 million of Canada Nickel's 34,115,256 total issued and outstanding common shares.
Canada Nickel has paid $5 million to Diamondex Resources Ltd. and earned a 10% interest in the James Bay Lowlands Nickel Project (the "Property”). Canada Nickel can earn a total of 51% interest in the Property by:
Southern Arc's investment in Canada Nickel was unanimously approved by the independent directors of the Company. While Southern Arc's investment in Canada Nickel does not require the Company to prepare a valuation or to seek shareholder approval under the policies of the TSX Venture Exchange or Multilateral Instrument 61-101, an annual and special meeting has been called for September 30, 2008 at which shareholders will have an opportunity to ratify the investment in Canada Nickel. The Company has completed its analysis of the analogous provisions of MI 61-101 and will permit all shareholders, including John Proust, to vote on the Canada Nickel private placement. Southern Arc is recommending that shareholders vote in favor of ratifying this investment.
On Behalf of the Board of Southern Arc Minerals Inc.
Dr. Michael Andrews
Director
For more information please contact:
Southern Arc Minerals Inc.
Telephone: (604) 676-5241 Fax: (604) 676-5246
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: http://southernarcminerals.com/
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Canada Nickel has paid $5 million to Diamondex Resources Ltd. and earned a 10% interest in the James Bay Lowlands Nickel Project (the "Property”). Canada Nickel can earn a total of 51% interest in the Property by:
- making $5 million in exploration expenditures in year 1 (which earns Canada Nickel a further 12% interest in the Property). Canada Nickel has used a portion of the proceeds of the private placement to fund $1.1 million of the year 1 exploration budget on the Property;
- making a further $7 million in exploration expenditures in year 2 (which earns Canada Nickel a further 14% interest in the Property); and
- making a further $8 million in exploration expenditures in year 3 (which earns Canada Nickel a further 15% interest, for a total interest of 51%).
Southern Arc's investment in Canada Nickel was unanimously approved by the independent directors of the Company. While Southern Arc's investment in Canada Nickel does not require the Company to prepare a valuation or to seek shareholder approval under the policies of the TSX Venture Exchange or Multilateral Instrument 61-101, an annual and special meeting has been called for September 30, 2008 at which shareholders will have an opportunity to ratify the investment in Canada Nickel. The Company has completed its analysis of the analogous provisions of MI 61-101 and will permit all shareholders, including John Proust, to vote on the Canada Nickel private placement. Southern Arc is recommending that shareholders vote in favor of ratifying this investment.
On Behalf of the Board of Southern Arc Minerals Inc.
Dr. Michael Andrews
Director
For more information please contact:
Southern Arc Minerals Inc.
Telephone: (604) 676-5241 Fax: (604) 676-5246
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: http://southernarcminerals.com/
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
