By Devika Patel
Knoxville, Tenn., Nov. 19 - UC Resources Ltd. said it has settled a brokered private placement of units and flow-through units, raising C$4.1 million. The deal priced on Oct. 18. It also said it has raised C$714,450 in a non-brokered private placement. It did not give details about that deal.
In the brokered deal, the company sold 5,777,778 units at C$0.45 apiece for C$2.6 million. Each unit consists of one common share and one half-share warrant. Each warrant is exercisable into one non flow-through common share at C$0.70 for two years.
The company also sold 3 million flow-through units of one flow-through common share and one half-share warrant at C$0.50 each for C$1.5 million. The warrants in the flow-through units have the same terms as those offered in the units.
The warrants may expire sooner if the closing price of UC's common shares is at least C$1.50 for at least 30 consecutive trading days. In that case, the warrants will expire 30 days after the company notifies holders.
PowerOne Capital Markets Ltd. was the agent for the brokered placement. PowerOne was paid a C$328,000 cash commission and also received a compensation option exercisable for 877,778 units for two years at C$0.45 per unit. Each unit consists of one share and one half-share warrant, with each whole warrant exercisable at C$0.70 per share for two years.
Proceeds will be used for exploration.
Based in Vancouver, B.C., UC is a base and precious metals company.
Brokered deal
| Issuer: | UC Resources Ltd.
|
| Issue: | Units of one non flow-through common share and one half-share warrant; flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$4.1 million (maximum)
|
| Agent: | PowerOne Capital Markets Ltd.
|
| Fees: | C$328,000 in cash; a compensation option exercisable for 877,778 units
|
| Pricing date: | Oct. 18
|
| Settlement date: | Nov. 19
|
| Stock symbol: | TSX Venture: UC
|
| Stock price: | C$0.54 at close Oct. 17
|
|
|
| Units
|
| Amount: | C$2.6 million
|
| Units: | 5,777,778
|
| Price: | C$0.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.70
|
|
|
| Flow-through units
|
| Amount: | C$1.5 million
|
| Units: | 3 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.70
|
|
|
| Non-brokered deal
|
| Amount: | C$714,450
|
| Settlement date: | Nov. 19
|
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