longbomb:

Yes you are correct. See excerpt from amalgamation announcement below...

"The proceeds of the private placement are intended to be used by the resulting issuer in connection with the exploration of the Kerrs Property".

Technically completion of this PP is a pre-condition of the amalgamation. Proceeds will be used to explore Kerrs. According to Filing Statement, combined, both LRU and SOR had about $300k in cash as of approx. March 31, 2008.

Remember, SGX will have 1.868 million warrants to purchase new combined company shares at just over 26.77 cents (see Schedule A of 'Amalgamation Agreement' dated May 29, 2008)... this is in addition to 672k shares they already have as a result of Kerrs option agreement... latest PP was done at 40 cents... what price will new company trade when trading resumes?! Likely higher than 40 cents. If good results from Kerrs exploration?... Who knows... SGX could turn out to have be a very sizeable investment in another publicly traded company very quickly... there will only be about 18 million shares of new company issued and outstanding. Exciting IMO.

red911

Excerpt from June 2, 2008 amalgamation agreement:

"The amalgamation is conditional, among other things, on the completion of a private
placement by Lucrum of 2,500,000 common shares of Lucrum at $0.40 per share to raise gross proceeds of $1,000,000. The agent for the private placement is Canaccord Capital Corporation who will receive a commission equal to 8% of the gross proceeds of the offering, payable in cash, common shares of Lucrum, or a combination thereof at the discretion of the agent, and will also receive that number of agent’s warrants equal to 8% of the number of common shares of Lucrum issued in the private placement. Each
agent’s warrant will be exercisable into one common share of Lucrum at a price of $0.40
per share for a period of twelve months from closing of the private placement. The agent is also entitled to receive a $15,000 administration fee and reimbursement of all expenses incurred by the agent in connection with the private placement. The proceeds of the private placement are intended to be used by the resulting issuer in connection with the exploration of the Kerrs Property."