Soho Resources Corp. Negotiates $1,000,000 Private Placement Financing
December 18 2008 - 4:00PM
Marketwired
Soho Resources Corp. ("Soho" or the "Company") (TSX VENTURE: SOH)
reports that it has negotiated a non-brokered unit private
placement with three unrelated Chinese investors. The private
placement is to consist of 25 million units priced at $0.04 per
unit with each unit consisting of one common share and one
transferable share purchase warrant, with each warrant exercisable
into one additional common share at a price of $0.05 per share
within a period of two years from closing. The maximum number of
units to be issued to any one placee will be 10 million, such that
there will be no new greater than 10% shareholders resulting from
the placement.
Upon closing of the private placement, anticipated near the end
of January 2009, the Company will appoint two new directors, one of
which will be designated by one of the placee's. The second
director to be appointed will be Mr. Yao Sun of North Vancouver,
who was instrumental in assisting the Company in arranging the
placement.
The proceeds of the placement are to be used to fund the cost of
an updated resource report, additional exploration on the Company's
Tahuehueto Project, and for general corporate purposes.
"In these very difficult market conditions we are pleased to
have negotiated this private placement which ensures Soho will have
adequate working capital throughout 2009, at our current vastly
reduced burn rate," states Ralph Shearing, President & CEO of
the Company, "should market conditions improve such that it allows
for additional funding to be achieved at less dilutive rates we
intend to accelerate exploration work required to advance the
Tahuehueto Project towards economic studies and possible future
production."
Upon closing a finder's fee of 6% will be paid in relation to
the private placement, as to 50% in cash and 50% in units having
the same exercise terms as the unit in the private placement.
The placement is subject to the approval of the TSX Venture
Exchange.
WARNING: The Company relies upon litigation protection for
"forward-looking" statements. This News Release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of up-coming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements. Soho Resources Corp.
relies upon litigation protection for forward-looking
statements.
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.
Contacts: Soho Resources Corp. Glen Sandwell (604) 684-8071 or
Toll Free: 1-800-685-0576 Email: gsandwell@sohoresources.ca
Website: www.sohoresources.ca
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