Nunavut

FINANCE – Shear Minerals Ltd. Aug. 27 said it closed a marketed private placement equity offering and the completed the purchase of the Jericho diamond mine and related assets in Nunavut. Under the offering, 139,451,000 conventional units, each consisting of one common share and one common share purchase warrant, and 62,300,350 flow-through units, each consisting of one flow-through common share and one-half of one common share purchase warrant were issued. Gross proceeds of the offering totaled C$13,113,838, reflecting a price of C6.5 cents each for the conventional units and flow-through units. Each conventional unit warrant entitles its holder to acquire one additional common share at a price of C7.5 cents for a period of 48 months following the date of issuance. Each flow-through unit warrant entitles the holder thereof to acquire one additional common share at a price of C8 cents for a period of 24 months following the date of issuance. Concurrently with the completion of the offering, Shear Minerals finalized its previously announced acquisition of the Jericho diamond mine and related assets in Nunavut. As consideration for the Jericho acquisition, Shear Minerals issued an aggregate of 80 million common shares, made a payment of C$1.5 million and issued a promissory note for C$500,000 payable on the first anniversary of the date of closing of the Jericho acquisition. As previously announced, as a result of the significant increase in its issued and outstanding share capital, which has resulted from the completion of the Jericho acquisition and the offering, it is intended that at the next annual meeting of its shareholders Shear Minerals will propose a consolidation of its then issued and outstanding common shares. While the specific consolidation ratio to be proposed will be determined in due course, the ratio is not expected to exceed 10:1. The meeting is expected to be held on or about Nov. 29, and with the record date in respect of the meeting expected to be on or about Oct. 25.