Deal conducted with lead investor Primary Capital at 12.75% premium
By Devika Patel
Knoxville, Tenn., Nov. 23 - Goldstone Resources Inc. said it increased a private placement of shares that priced Monday.
The company will now sell 5,652,174 flow-through common shares C$1.15 per share to investors led by Primary Capital Inc. for C$6.5 million. The price represents a 12.75% premium to C$1.02, the closing share price on Nov. 19.
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.
"We are gratified by the strong demand for this issue," Goldstone chairman and interim chief executive officer Phil Cunningham said in a press release upon increasing the offering. "The increased proceeds will allow us to mount an even more aggressive exploration program in 2011."
"It means more money for the company at these higher prices," added Monir Younan, a consultant and the former president of Roxmark mines, which merged with Ontex Resources in 2009 to form Goldstone. In an interview with Prospect News, Younan said he hoped the outcome of the deal would be "more value to shareholders."
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$6.5 million
|
| Shares: | 5,652,174
|
| Price: | C$1.15
|
| Warrants: | No
|
| Investor: | Primary Capital Inc. (lead)
|
| Pricing date: | Nov. 22
|
| Upsized: | Nov. 23
|
| 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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