By Sheri Kasprzak
New York, April 24 - Gateway Gold Corp. said the greenshoe on its previously announced private placement was exercised, bringing the proceeds to C$5 million.
The company issued a total of 4 million special warrants at C$1.25 each, including the over-allotment option for 800,000 special warrants exercised by agent Haywood Securities Inc.
Each special warrant is exchangeable for units of one share and one half-share warrant once the company receives shareholder approval.
The whole warrants are exercisable at C$1.60 each for one year.
The deal priced on March 29 as a C$4 million offering of 3.2 million special warrants.
Proceeds will be used for exploration on the company's Nevada properties and for working capital.
Based in Vancouver, B.C., Gateway is a gold exploration company.
| Issuer: | Gateway Gold Corp.
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| Issue: | Special warrants exchangeable for units of one share and one half-share warrant
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| Amount: | C$5 million
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| Special warrants: | 4 million (includes greenshoe for 800,000 special warrants)
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| Price: | C$1.25
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | One year
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| Warrant strike price: | C$1.60
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| Placement agent: | Haywood Securities Inc.
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| Pricing date: | March 29
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| Settlement date: | April 24
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| Stock symbol: | Toronto: GTQ
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| Stock price: | C$1.44 at close March 29
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| Stock price: | C$1.80 at close April 24
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