MELFORT, SK, April 21, 2014 /CNW/ - On March 6, 2014, Hodgins Auctioneers Inc.
("Hodgins" or the "Corporation") (TSXV: HA) announced
that it has entered into a conditional agreement with Majesta
Resources Inc. ("Majesta") to acquire a 25% undivided interest in a
group of nine contiguous mineral claims with a combined total of
39,125 hectares (98,233 acres) ("Majesta Mineral Claims") located
230 km NW of La Ronge and 445 km
north of Prince Albert,
Saskatchewan. The two parties have extended the
closing date to May 5, 2014.
The TSXV has extended its closing date condition to the approval of
the transaction and the raising of $350,000 by non-brokered private placement to
May 5, 2014.
Private Placement
The Corporation is seeking to close
a non-brokered private placement of up to 7,000,000 units at a
price $0.05 per unit for gross
proceeds of up to $350,000. The
parties have amended the flow through terms such that six of seven
of every common share issued has flow through attributes. Each unit
will be comprised of one common share in the capital of Hodgins and
one half of one common share purchase warrant. Each full
warrant will entitle the holder to purchase one common share at a
price of $0.075 per common share
exercisable no later than the date that is one year from the date
of issuance of such warrant provided. All of the
securities issued under the private placement will be subject to a
four month resale restriction and will contain a legend which will
detail the resale restriction. There is no minimum
subscription under the private placement and Hodgins may close the
offering in several tranches, however, the private placement must
be concluded by May 5, 2014. The
proceeds of the private placement will be used to make the claims
acquisition.
In connection with this private placement, Hodgins will pay cash
finder's fees equal to 8% of the funds raised to eligible finders
who introduce subscribers to the private placement and issue one
common share and one finder's fee warrant for every 10 units issued
to eligible subscribers. Each finder's fee warrant will be
issued to finders on the same terms as the warrants comprising the
units.
About Hodgins Auctioneers Inc.
Hodgins Auctioneers
Inc. is an auction company conducting business in Western
Canada. For further information, please contact Grant Hodgins, CEO, 306.752.2075 or visit
www.hodginsauctioneers.com
Reader Advisory
Except for statements of historical
fact, this news release contains certain "forward-looking
information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may" or "will" occur. In
particular, forward-looking information in this press release
includes, but is not limited to, statements with respect to the
timing and completion of the proposed private placement and related
information. Although we believe that the expectations reflected in
the forward-looking information are reasonable, there can be no
assurance that such expectations will prove to be correct. We
cannot guarantee future results, performance or achievements.
Consequently, there is no representation that the actual results
achieved will be the same, in whole or in part, as those set out in
the forward-looking information.
The forward-looking information contained in this news
release is expressly qualified by this cautionary statement. We
undertake no duty to update any of the forward-looking information
to conform such information to actual results or to changes in our
expectations except as otherwise required by applicable securities
legislation.
Neither the 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).
SOURCE Hodgins Auctioneers Inc.