By Devika Patel
Knoxville, Tenn., Nov. 7 - San Gold Corp. said it plans a private placement of units to raise C$25.06 million.
The company will sell 17.9 million units on a bought-deal basis at C$1.40 per unit. Each unit consists of one common share and one half-share warrant. Each whole transferable warrant will be exercisable at C$2.00 for 18 months.
Dundee Securities Corp. will lead a syndicate of underwriters, which includes Cormark Securities Inc. and GMP Securities L.P. for this placing. They will have a 10,725,000-unit greenshoe, for about C$15 million, and receive a 6% cash commission and a number of broker warrants, priced at C$2.00 each, equal to 4% of the units sold. The broker warrants will be exercisable on the same terms as the warrants sold in the offering.
Proceeds from the deal, which is expected to settle on Nov. 28, will be used for development and general corporate purposes.
Based in Bissett, Manitoba, San Gold explores for gold.
| Issuer: | San Gold Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$25.06 million
|
| Greenshoe: | 10,725,000 units, or C$15 million
|
| Units: | 17.9 million
|
| Price: | C$1.40
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$2.00
|
| Underwriters: | Dundee Securities Corp. (lead), Cormark Securities Inc., GMP Securities L.P.
|
| Fees: | 6% in cash, 4% in warrants
|
| Pricing date: | Nov. 7
|
| Settlement date: | Dec. 3
|
| Stock symbol: | TSX Venture: SGR
|
| Stock price: | C$1.54 at close Nov. 7
|
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