Mineral explorer to fund work programs, acquisitions, working capital
By Devika Patel
Knoxville, Tenn., Oct. 18 - African Queen Mines Ltd. said Friday that it has arranged a non-brokered private placement of units.
The company will sell 7.5 million units of one common share and one half-share warrant at C$0.65 per unit for C$4.88 million. Each whole warrant is exercisable at C$0.85 for two years.
The strike price reflects a 34.92% premium to the Oct. 14 closing share price of C$0.63.
There is a 20% greenshoe. The offering is expected to close in tranches, with the first closing expected this month.
Proceeds will be used for work programs on the company's gold projects in Mozambique, Kenya and Ghana and on its diamond projects in Botswana and Namibia. Proceeds will also be used for potential property acquisitions and working capital.
African Queen is a mineral exploration company based in Vancouver, B.C.
| Issuer: | African Queen Mines Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$4,875,000
|
| Greenshoe: | 1.5 million units for C$975,000 (20%)
|
| Units: | 7.5 million
|
| Price: | C$0.65
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.85
|
| Agent: | Non-brokered
|
| Pricing date: | Oct. 15
|
| Stock symbol: | TSX Venture: AQ
|
| Stock price: | C$0.59 at close Oct. 15
|
| Market capitalization: | C$26.82 million
|
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