Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announces the completion of a flow-through financing with MineralFields Group announced on November 22, 2010. The financing consisted of a private placement of 9,375,000 flow-through units for gross proceeds of $1.5 million. Each unit was priced at $0.16 and consisted of one flow-through common share and one half of one transferrable, callable, non-flow-through share purchase warrant. One whole warrant will entitle the holder to acquire one additional common share at a price of $0.20 per share for a period of one year after closing of the offering, and thereafter at $0.25 per share for one additional year. A cash finder's fee equal to 6.07% and a cash due diligence fee 0.5% was paid on closing, as well as a finder's fee option to purchase units at an exercise price of $0.16 per unit equal to 6.53% of the number of units subscribed for. The finder's fee option has the same terms as the flow-through units. The gross proceeds from the sale of the flow-through units will be used by the Company for early stage and advanced exploration expenses on projects in Canada that qualify as "Canadian exploration expenses" under the Income Tax Act (Canada).
The Company will have the right to accelerate the expiry date of the warrants to thirty (30) days from the date of the exercise of such acceleration right by providing holders of the warrants with written notice of such reduction in the exercise period. The right to accelerate will be triggered in the event that the average closing price of the Company's common shares is $0.35 or more per share over a period of twenty (20) consecutive trading days during the first twelve months after closing of the offering, or $0.40 or more per share over a period of twenty (20) consecutive trading days during the second twelve months.
"We are very pleased to be renewing our relationship with the MineralFields Group", said Glen H. McKay, CEO of Cornerstone. "This is an important milestone in the continued exploration and development of our mineral properties and we look forward to working with MineralFields Group as we advance our projects in Canada and Ecuador."
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