Jan 03, 2003
Probe Announce Private Placement And Debt Settlement
Probe Mines Limited (TSXVE: YPB.N) is pleased to announce that it has completed a non-brokered private placement financing for gross proceeds of $99,950 subject to regulatory approval. The private placement will consist of the sale of 1,198,667 Units of which 798,667 Units were sold at $0.075 per Unit and 400,000 Units were sold at $0.075 per Unit. The Units sold at $0.10 per Unit were sold on a flow-through basis. Each Unit will separate immediately upon issuance into one common share and one common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share for $0.10 in the one year period after closing. Of this private placement, 400,000 Units sold at $0.10 per unit for gross proceeds of $40,000 were sold on a non-arm's length basis in accordance with applicable regulations. The proceeds of the private placement will be applied to working capital and resource exploration property expenditures. The shares issued in the private placement, including any shares issued pursuant to the common shares purchase warrants, have a hold period of twelve months from the date of closing.
Probe Mines is also pleased to announce that it has completed a non-arm's length debt settlement of all of its shareholder advances totaling $19,770 for the issuance of 197,700 shares at $0.10 per share. As a result of the debt settlement and proposed private placement there are 10,128,556 shares issued and outstanding. The shares issued pursuant to the debt settlement have a hold period of four months from the date hereof.
The private placement and debt settlement transactions have resulted in increases in the number of shares held by insiders. Dennis H. Peterson, a director of Probe, acquired 400,000 Units pursuant to the private placement at $0.10 per share, and 97,700 shares pursuant to the debt settlement at $0.10 per share. When combined with existing holdings, Mr. Peterson now owns 2,975,500 shares of Probe (29.4% of the issued and outstanding Probe shares). Harry J. Hodge, the President and a director of Probe, acquired 100,000 shares pursuant to the debt settlement at $0.10 per share. When combined with existing holdings, Mr. Hodge now owns 2,577,800 shares of Probe (25.5% of the issued and outstanding Probe shares). William H. McKelvey, an arm's length investor, acquired 532,667 Units pursuant to the private placement at $0.075 per Unit representing 5.5% (10.5% fully diluted) of the issued and outstanding Probe shares. Mr. McKelvey had no prior holdings of Probe shares and has acquired the shares for investment purposes.
For further information please contact:
Dennis H. Peterson
Probe Mines Limited
32 Roxborough Street East
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Probe, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Probe's expectations are exploration risks detailed herein and from time to time in the filings made by Probe with securities regulators.
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