By Laura Lutz
Des Moines, Oct. 26 - CMQ Resources Inc. announced a planned C$10.125 million private placement and a C$1.5 million bridge funding facility.
The company plans to sell up to 22.5 million units of one share and one half-share warrant at C$0.45 per unit. Each full warrant will be exercisable at C$0.55 for 18 months.
The deal will be conducted through a syndicate of registered dealers led by Wellington West Capital Markets Inc. and including Canaccord Capital Corp. and Paradigm Capital Inc.
Orogen Holdings (BVI) Ltd., a subsidiary of Gold Fields Ltd. plans to subscribe for C$2.74 million, or 27% of the placement.
The company arranged the C$1.5 million bridge funding agreement with Matco Capital Ltd., a significant CMQ shareholder. Drawdowns of the bridge facility will be repayable out of the proceeds of the private placement if it is completed and, in any event, repayable by June 30, 2007.
The facility bears interest at Prime rate plus 100 basis points and is secured against the assets of CMQ. Matco will also receive $75,000 of warrants on the same terms as those included in the private placement.
Assuming the full private placement is completed, CMQ will have about 74.3 million shares outstanding.
Proceeds of the placement will be used to repay the bridge facility and for drilling at the company's Vasquir, Nevada property.
CMQ is a mineral exploration company based in Calgary, Alta.
Units
| Issuer: | CMQ Resources Inc.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$10.125 million
|
| Units: | 22.5 million
|
| Price: | C$0.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.55
|
| Underwriters: | Wellington West Capital Markets Inc. (lead), Canaccord Capital Corp., Paradigm Capital Inc.
|
| Pricing date: | Oct. 26
|
| Stock symbol: | TSX Venture: CMQ
|
| Stock price: | C$0.50 at close Oct. 26
|
|
|
| Bridge facility
|
| Issuer: | CMQ Resources Inc.
|
| Issue: | Loan
|
| Amount: | C$1.5 million
|
| Maturity: | June 30, 2007
|
| Coupon: | Prime rate plus 100 bps
|
| Price: | Par
|
| Warrants: | C$75,000
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.55
|
| Investor: | Matco Capital Ltd.
|
| Announcement date: | Oct. 26
|
| Stock symbol: | TSX Venture: CMQ
|
| Stock price: | C$0.50 at close Oct. 26
|
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