First Bauxite Announces Closing of First Tranche of Non-Brokered Private Placement

Oct. 6, 2010 - First Bauxite Corporation announces that it has closed the first tranche of its non-brokered private placement of 3,057,229 units at a price of $0.83 per Unit, raising a total of $2,537,500. Each Unit consists of one common share and one-half of a transferable common share purchase warrant. Each whole Warrant is exercisable into one additional common share of the Company until October 5, 2012, at an exercise price of $1.075 per Warrant Share. The Common Shares comprising the Units and any Common Shares issued upon the exercise of the Warrants are subject to a four month hold period expiring on February 6, 2011.
In connection with the closing, the Company has agreed to pay a transaction fee in the amount of $52,500. The Company has also agreed to pay a cash finder's fee of $49,800 and further issue an aggregate of 60,000 finder's warrants. Each Finders' Warrant entitles the holder thereof to purchase one common share of the Company at an exercise price of $1.075 until October 5, 2012. The Finders' Warrants are subject to a four-month hold period expiring on February 6, 2011.
The proceeds from the private placement will be used primarily to fund the continued exploration and development activities on the Company's Bonasika Mining License and the Waratilla Cartwright Prospect License, all located in Guyana, as well as for development and general working capital expenses.
The private placement remains subject to the final approval of the TSX Venture Exchange.