Proceeds to develop Spanish Mountain and explore Cedar Creek claims
By Devika Patel
Knoxville, Tenn., June 30 - Spanish Mountain Gold Ltd. said it has negotiated a C$15 million private placement of units.
The company will sell 25 million units of one common share and one half-share warrant at C$0.60 apiece. Each whole warrant will be exercisable at C$0.70 for two years. The strike price reflects a 16.67% premium to the June 29 closing share price of C$0.60.
Ian Watson, a director, is expected to buy 5 million of the units for C$3 million, which is about 20% of the offering and 3.19% of the company's outstanding shares after the deal is completed. In addition, certain insiders are expected to buy 800,000 units.
Settlement is expected July 7.
Proceeds will be used for development of the company's Spanish Mountain gold project, to explore the Cedar Creek claims and for general corporate purposes.
The gold explorer is based in Vancouver, B.C.
| Issuer: | Spanish Mountain Gold Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$15 million
|
| Units: | 25 million
|
| Price: | C$0.60
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.70
|
| Investor: | Ian Watson (for C$3 million)
|
| Pricing date: | June 30
|
| Settlement date: | July 7
|
| Stock symbol: | TSX Venture: SPA
|
| Stock price: | $0.60 at close June 29
|
| Market capitalization: | $74.66 million
|
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