Tyhee Development Corp
Tuesday, July 24th, 2007
Tyhee Development Corp. has engaged Loewen, Ondaatje, McCutcheon Limited to conduct a brokered private placement to raise up to $4 million through the issue of up to 7,692,308 common shares which will be designated as flow through shares for the purposes of the Income Tax Act (Canada), at a price of $0.52 per Flow Through Share and up to $1 million through the issue of 2,381,000 of non-flow though common shares at a price of $0.42 per Common Share on a best efforts basis for total gross proceeds of up to $5 million. Loewen Ondaatje will receive (i) a cash commission equal to 7% of the proceeds of the offering of the Flow Through Shares; (ii) a cash commission equal to 7% of the proceeds of the offering of the Common Shares and; (iii) 7% agentâ€™s compensation options on the proceeds of the offering of the Common Shares consisting of an option to acquire one Common Share of the Company at $0.42 for 18 months following the closing. Loewen Ondaatje will be granted an option to over-allocate their portion of the private placement by 20%. Closing of this placement is scheduled to take place on or about August 16, 2007.
In addition, the Company has agreed to sell 4,762,000 common shares at a price of $0.42 per common share to raise $2 million in a private placement to an institutional investor in the United States. A 5% cash finders fee is payable on funds raised with respect to this placement.
All securities issued in connection with the private placement will be subject to a minimum four month hold period. The funds from the private placement will be used for further exploration and development of the Companyâ€™s mineral projects, including the advanced-stage Yellowknife Gold Project and for general corporate purposes. The private placement is subject to the approval of the TSX Venture Exchange.