Best-efforts deal intended to finance work program on Crescent Mine
By Devika Patel
Knoxville, Tenn., Dec. 23 - United Mining Group, Inc. said it settled the first tranche of a private placement of units. Pope & Co. Ltd. is the agent for the C$8 million deal, which priced on Dec. 1 and raised C$7.29 million in the initial tranche.
The company is selling 8,888,888 units of one common share and one half-share warrant at C$0.90 apiece on a best-efforts/commercially reasonable basis. The whole warrants are exercisable at C$1.25 for two years.
The strike price represents a 30.21% premium to the Nov. 30 closing share price of C$0.96.
Proceeds will be used for the company's work program, primarily on the Crescent Mine, and for general corporate purposes.
"Pope & Co. is an excellent partner to assist United Mining with the equity raise currently under way as well as in the longer term, to help us grow the business. They bring both a strong distribution network and excellent investment banking advice," chief executive officer Charles Pitcher said in a press release at pricing.
Vancouver, B.C.-based United is a mining company.
| Issuer: | United Mining Group, Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$8 million
|
| Units: | 8,888,888
|
| Price: | C$0.90
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.25
|
| Agent: | Pope & Co. Ltd.
|
| Pricing date: | Dec. 1
|
| Settlement date: | Dec. 23 (for $7,291,700)
|
| Stock symbol: | Toronto: UMG
|
| Stock price: | C$0.94 at close Dec. 1
|
| Market capitalization: | C$61.74 million
|
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