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Absolut Resources Corp. (TSX.V: ABS) has entered into an agreement with Sprott Securities Inc. and Dundee Securities Corporation with respect to an underwritten private placement of 3,000,000 units at a price of $1.00 per unit for aggregate gross proceeds of approximately $3,000,000. The underwriters have an option to purchase up to an additional 500,000 units at the issue price for additional gross proceeds of up to approximately $500,000 at any time prior to closing. Each unit shall consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at the price of $1.15 for a period of twelve months from the closing date. The offering is subject to normal regulatory approvals. It is anticipated that closing of the offering will occur on or about July 27, 2004. In connection with the financing, Absolut has agreed to issue to the underwriters compensation warrants entitling the underwriters to purchase that number of units that is equal to 10% of the number of units sold pursuant to the financing. The compensation warrants will be exercisable at a price of $1.00 for a period of twelve months following the closing date.
Absolut Resources Corp. is a precious metals exploration and development company based in Toronto, Canada. The Company's primary asset is the Picho Machay Gold Project, Peru. The project's geological features are comparable to other established mines in the Peru. Absolut strongly believes in an international best practices approach, and implements this on a company wide basis for all its social and environmental decisions.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
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