DUMONT NICKEL INC. (DNI : TSX-Ven, DG7 : Frankfurt)
TORONTO, March 10 /CNW/ - Dumont Nickel Inc. (DNI:TSX-Ven, DG7:FSE) announces its intention to conduct a non-brokered private placement financing, subject to regulatory approvals, consisting of up to 20 million units at a price of one cent per unit, for gross proceeds of up to $200,000, each unit consisting of one common share and one common share purchase warrant entitling the holder to purchase an additional common share of the company at a price of five cents per share for a period of twelve months from closing. Proceeds of the financing will be applied toward ongoing work on Dumont's polymetallic black shale Properties in Alberta, and toward meeting short term operating working capital requirements. Insiders might participate in the financing.
Dumont also announces that it has entered into a non-exclusive agreement with Capital Street Group Investment Services Inc. ("CSG"), of Vancouver, B.C., to assist Dumont with presentation of its polymetallic black shale projects to select strategic parties, pre-screened by CSG, for project participation or participation via traditional equity investment in Dumont. CSG is at arm's length to Dumont.
Under the agreement, Dumont will compensate CSG a 7% finder fee, on a success fee basis, for any commercial arrangement concluded between Dumont and parties introduced to it by CSG. The agreement with CSG will remain in good standing for a nine month term, and be automatically renewed thereafter for consecutive nine month terms unless terminated by either party by due notice. CSG has identified several prospective strategic parties with whom dialogue has been initiated.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. DNI - TSX Venture DG7 - Frankfurt Issued: 135,048,010