Proceeds to fund exploration of Blackdome-Elizabeth gold project
By Devika Patel
Knoxville, Tenn., Aug. 2 - Sona Resources Corp. said it raised C$159,000 in the second tranche of a C$1.5 million non-brokered private placement of units. The deal priced July 17 and took in C$1.1 million on July 25.
The company is selling 5 million units of one common share and one half-share warrant at C$0.30 per unit. It sold 3,665,000 units to Lu'An (Canada) Capital & Energy Investment Inc. in the initial tranche and 530,000 units in the second tranche.
Each two-year warrant is exercisable at C$0.50 in the first year and at C$0.60 in the second year. The strike prices represent 163.16% and 215.79% premiums to the July 16 closing share price of C$0.19.
Canada Asia Business Network received 293,200 finder's warrants and an $87,960 cash finder's fee.
Proceeds will be used for general corporate expenses and exploration at the Blackdome-Elizabeth Gold Project.
Vancouver, B.C.-based Sona is a gold exploration company.
| Issuer: | Sona Resources Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$1.5 million
|
| Units: | 5 million
|
| Price: | C$0.30
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike prices: | C$0.50 in the first year and at C$0.60 in the second year
|
| Agent: | Non-brokered
|
| Investor: | Lu'An (Canada) Capital & Energy Investment Inc. (for C$1,099,500)
|
| Pricing date: | July 17
|
| Settlement dates: | July 25 (for C$1,099,500), Aug. 2 (for C$159,000)
|
| Stock symbol: | TSX Venture: SYS
|
| Stock price: | C$0.19 at close July 16
|
| Market capitalization: | C$4 million
|
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