Fronteer Development Group Inc.
Fronteer Closes $7.18 Million in First Tranche of Financing
Corporate-news announcement sent by DGAP.
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Fronteer Closes $7.18 Million in First Tranche of Financing
Apr 5, 2004
Fronteer Development Group Inc. (FRG:TSX, FRR-Frankfurt) is pleased to announce
that it has closed the first tranche of its previously announced private
placement financing to raise gross proceeds of approximately $7,178,300. This
financing was brokered by a syndicate of agents led by Pacific International
Securities Inc and included Toll Cross Securities Inc and Dundee Securities Inc.
ADVERTISEMENT
Pursuant to the financing, Fronteer issued 6,525,727 units at a price of $1.10
each. Each unit consists of one common share and one-half of one share purchase
warrant. Each whole share purchase warrant entitles the holder thereof to
acquire one common share of Fronteer for two years at an exercise price of $1.45
for the first year and $1.65 for the second year.
The Agents have elected to receive their 7% commission of the gross proceeds in
cash ($339,951.58) and in units (147,754). The Agents also received 652,573
broker warrants being 10% of the units sold. Each broker warrant entitles the
holder to acquire one common share of Fronteer at an exercise price of $1.50 for
one year.
Proceeds of the offering will be used for the exploration of Fronteer’s mineral
properties in Labrador and Red Lake, for the acquisition and development of new
mineral properties and for working capital. In closing this first tranche of the
financing, Fronteer has approximately $10 million in its treasury and
28,284,666 shares issued and outstanding.
The Agents have retained an option to sell up to an additional 2,674,273 units
for gross proceeds of up to approximately $2,941,700 until April 15, 2004.
Fronteer has five active exploration programs in Canada focused on gold and
uranium-copper-gold-silver – (Olympic dam style) deposits. Fronteer is also
currently completing due diligence on Teck Cominco’s advanced stage gold
portfolio in Turkey, and is continuing in its aggressive acquisition strategy on
an international scale capitalizing on the strengths of its management team and
board of directors.
On behalf of Fronteer Development Group Inc.
MARK O’DEA PhD, P.Geo, President and CEO
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Contact:
Fronteer Development Group Inc.
Mark O’Dea
President & CEO
Phone: (604) 632-4677
Email: modea@fronteergroup.com
Website: www.fronteergroup.com
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Source: Fronteer Development Group Inc
end of message, (c)DGAP 04.04.2004
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WKN: 533050; ISIN: CA35903Q1063; Index:
Listed:
042234 Apr 04
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