By Sheri Kasprzak
New York, March 15 - Southern Star Resources Inc. has upsized to C$17,593,500 its previously announced C$15,091,000 private placement.
The offering will now include 3.87 million units at C$3.25 each and 1.32 million flow-through shares at C$3.80 each.
The flow-through shares are priced at an 8% premium to the company's closing stock price of C$3.49 on March 14 and the units at a 6.8% discount to the March 14 closing stock price.
The units consist of one share and one half-share warrant, with each whole warrant exercisable at C$4.00 for one year.
The expiry of the warrants may be accelerated to 30 days if the company's stock trades above C$5.00 for 20 consecutive trading days.
The deal priced Wednesday morning as a C$15,091,000 offering of 3.1 million units and 1.32 million flow-through shares.
Dundee Securities Corp., Westwind Partners Inc. and Jones Gable & Co. Ltd. are the placement agents.
Proceeds will be used for general corporate purposes and working capital. Proceeds from the flow-through shares will be used for exploration on the company's Gold Eagle project.
Based in Toronto, Southern Star is a mineral exploration company.
| Issuer: | Southern Star Resources Inc.
|
| Issue: | Flow-through shares and units of one share and one half-share warrant
|
| Amount: | C$17,593,500 (maximum)
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| Placement agents: | Dundee Securities Corp., Westwind Partners Inc., Jones Gable & Co. Ltd.
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| Pricing date: | March 15
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| Stock symbol: | TSX Venture: SSR
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| Stock price: | C$3.49 at close March 14
|
| Stock price: | C$3.48 at close March 15
|
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|
| Flow-through shares
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| Shares: | 1.32 million (maximum)
|
| Price: | C$3.80
|
| Warrants: | No
|
|
|
| Units
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| Units: | 3.78 million (maximum)
|
| Price: | C$3.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$4.00
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