Deal conducted with lead investor Primary Capital at 12.75% premium
By Devika Patel
Knoxville, Tenn., Nov. 22 - Goldstone Resources Inc. said it will take in C$5 million in a private placement of shares.
The company will sell 4.35 million flow-through common shares C$1.15 per share to investors led by Primary Capital Inc. The price represents a 12.75% premium to C$1.02, the closing share price on Nov. 19.
"It's time to raise money for the next phase of our exploration program," said Monir Younan, a consultant working with Goldstone.
Younan was also the former president of Roxmark Mines, which merged with Ontex resources in 2009 to form Goldstone Resources.
Younan also noted that the "price was good," given its premium to the market. Investors were therefore "happy that the company is well funded."
"It's going to add more value to the company," he said.
Settlement is expected Dec. 16.
Proceeds will be used for exploration on the company's Key Lake property near Geraldton, Ont., as well as on its Brookbank, Leitch-Sand River and Northern Empire properties in the Beardmore Camp.
The gold exploration and development company is based in Toronto.
Stephanie N. Rotondo contributed to this article.
| Issuer: | Goldstone Resources Inc.
|
| Issue: | Flow-through common shares
|
| Amount: | C$5,002,500
|
| Shares: | 4.35 million
|
| Price: | C$1.15
|
| Warrants: | No
|
| Investor: | Primary Capital Inc. (lead)
|
| Pricing date: | Nov. 22
|
| Settlement date: | Dec. 16
|
| Stock symbol: | Toronto: GRC
|
| Stock price: | C$1.02 at close Nov. 19
|
| Market capitalization: | C$98.33 million
|
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