Bought-deal offering with 15% greenshoe to fund exploration in Yukon
By Devika Patel
Knoxville, Tenn., March 29 - Colorado Resources Ltd. announced it has arranged a private placement of units and stock. The deal, which has a 15% greenshoe, priced for C$12.27 million Tuesday and was increased to C$14.27 million a few hours later.
The company will sell 10,022,222 units of one common share and one half-share warrant at C$0.90 apiece and 5 million flow-through common shares at C$1.05 each on a bought-deal basis.
Each whole warrant is exercisable at C$1.25 for two years.
The strike price represents a 30.21% premium to C$0.96, the March 28 closing share price. The price per share is a 9.38% premium to that price.
Up to C$12.27 million of the deal will be conducted by underwriters Macquarie Capital Markets Canada Ltd. and Dundee Securities Ltd.
Settlement is expected April 14.
Proceeds will be used for development of the company's exploration properties, including the Oro Gold Property in the Yukon, and for general working capital purposes.
The Kelowna, B.C., company explores for gold and silver.
| Issuer: | Colorado Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$14.27 million
|
| Greenshoe: | 15%
|
| Underwriters: | Macquarie Capital Markets Canada Ltd. and Dundee Securities Ltd. (for C$12.27 million), non-brokered (for C$2 million)
|
| Pricing date: | March 29
|
| Upsized: | March 29
|
| Settlement date: | April 14
|
| Stock symbol: | TSX Venture: CXO
|
| Stock price: | C$0.96 at close March 29
|
|
|
| Units
|
| Amount: | C$9.02 million
|
| Units: | 10,022,222
|
| Price: | C$0.90
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.25
|
|
|
| Shares
|
| Amount: | C$5.25 million
|
| Shares: | 5 million
|
| Price: | C$1.05
|
| Warrants: | No
|
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