By Sheri Kasprzak
Atlanta, Oct. 27 - Greystar Resources Ltd. said late Tuesday it plans to enter the private placement market with a C$18.6 million offering.
The deal consists of 6 million units of one share and one half-share purchase warrant at C$3.10 per unit.
The whole warrants entitle the holder to one share at C$4 for two years after the deal closes. If, following the expiry of the four-month hold, the company's stock is above C$5 for more than 20 consecutive trading days, Greystar has the right to accelerate the expiry date to 20 business days.
Jennings Capital Inc. and Oceans Equities Ltd. will serve as placement agents in the deal.
The agents may increase the size of the offering by C$3.1 million up to 48 hours before closing.
Greystar is a gold and silver mining company based in Vancouver, B.C. The company intends to use the proceeds from the financing for the advancement of one of its projects, for exploration and for general working capital.
| Issuer: | Greystar Resources Ltd.
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| Issue: | Units of one share and one half-share purchase warrant
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| Amount: | C$18.6 million
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| Shares: | 6 million
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| Price: | C$3.10 per unit
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| Warrants: | ½ share purchase warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$4
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| Placement agent: | Jennings Capital Inc. and Oceans Equities Ltd.
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| Announcement date: | Oct. 26
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| Stock price: | C$3.35 at close Oct. 26
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