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HORNBY BAY EXPLORATION LIMITED
October 26, 2004 - Symbol: HBE (TSXV) HORNBY BAY CLOSES PRIVATE PLACEMENT Hornby Bay Exploration Limited (TSXV:HBE) has closed the private placement announced September 28, 2004. The $2.0 million offering and the $1.0 million over-allotment option granted to the agents were fully subscribed for.The placement was comprised of 2,727,271 units ("Units") of the Company at a price of $0.55 per Unit and 2,083,333 Flow Through Units ("Flow Through Units") of the Company at a price of $0.72 per Flow Through Unit. Each Unit is comprised of one common share and one-half of a common share purchase warrant, each warrant exercisable at a price of $0.75 for a period of 12 months from October 25, 2004. Each Flow Through Unit is comprised of one flow through common share and one-half of a flow through common share purchase warrant, each flow through warrant exercisable at a price of $0.92 for a period of 12 months from October 25, 2004. Toll Cross Securities Inc. and Dundee Securities Corporation acted as agents on the offering and received a commission equal to 8% of the aggregate gross proceeds placed by the agents and broker warrants ("Broker Warrants") equal to 8% of the number of securities placed by the agents under the offering. Each Broker Warrant will be exercisable at a price of $0.70 for one Unit for a period of 12 months from October 25, 2004. The securities issued pursuant to the offering are subject to a four month hold period. The proceeds of this private placement will be used by the company for working capital and to fund its on-going uranium exploration program on its 214 mineral claims covering 211,000 hectares (520,000 acres) of the Hornby Bay Basin in the Coronation Gulf area of Nunavut.
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