Wednesday, September 8, 2010

Watching Edgewater (EDW.v)


Your author has had Edgewater Exploration (EDW.v) on the radar ever since the company had the sagacity to hire George Salamis as its head honcho earlier this year during its start-up phase, so the TSXV filings this morning caught the eye. There's the one about the purchase of the Rio Narcea assets, but there's also the terms of the funding placement.

EDGEWATER EXPLORATION LTD. ("EDW")
BULLETIN TYPE: Private Placement-Non-Brokered
BULLETIN DATE: September 7, 2010
TSX Venture Tier 2 Company

TSX Venture Exchange ("Exchange") has accepted for filing documentation
with respect to a Non-Brokered Private Placement announced August 12, 2010:

Number of Shares: 10,413,000 Subscription Receipts. Each Subscription Receipt will automatically convert into a unit consisting of one common share and one half of one common share purchase warrant upon satisfaction of certain release conditions, including receipt of final Exchange approval of the Company's recently announced acquisition of Rio Narcea Gold Mines S.L. pursuant to an agreement with Lundin Mining Corporation.

Purchase Price: $1.00 per share

Warrants: 5,206,500 share purchase warrants to purchase
5,206,500 shares

Warrant Exercise Price: $1.40 for a three year period

Number of Placees: 54 placees

Insider/Pro Group Participation:

Insider equals Y/
Name ProGroup equals P/ No. of Shares

George Salamis Y 20,000
Silka Investments Ltd. P 50,000
Catherine Seltzer P 25,000
Thomas Seltzer P 25,000
Roger Poirier P 1,000,000
Darren Wallace P 260,000
Mike Harrison P 50,000
Chris Roy P 150,000
Kevin Williams P 150,000
Chris Burchell P 30,000
Jeff Kennedy P 60,000
Patrick Soares Y 100,000
Cormark Securities
Investment Fund P 1,000,000
Ryan King Y 10,000
Michael Marosits P 60,000

Finders' Fees: $249,912 and 249,912 warrants payable to Cormark Securities Inc.
$156,195 and 156,195 warrants payable to PI Financial Corp.
$124,956 and 124,956 warrants payable to Canaccord Genuity Corp.
$93,717 and 93,717 warrants payable to Haywood Securities Inc.

- Each warrant is exercisable at a price of
$1.10 for an 18 month period.

Pursuant to Corporate Finance Policy 4.1, Section 1.11(d), the Company must issue a news release announcing the closing of the private placement and setting out the expiry dates of the hold period(s). The Company must also issue a news release if the private placement does not close promptly. (Note that in certain circumstances the Exchange may later extend the expiry date of the warrants, if they are less than the maximum permitted term.)
So Eric Sprott likes Edgewater? (by that i mean both Cormark's million and the million under Roger Poirier's name). Food for thought. DYODD, dude.

Disclosure: No position in EDW.v