Offering finances development of the company's exploration properties
By Devika Patel
Knoxville, Tenn., April 14 - Colorado Resources Ltd. announced it completed the C$14.11 million brokered portion of a private placement of units and stock on a bought-deal basis. The deal priced for C$12.27 million on March 29 and was increased to C$14.27 million with a 15% greenshoe a few hours later. The greenshoe was fully exercised.
The company sold 8.97 million units of one common share and one half-share warrant at C$0.90 per unit and 5.75 million flow-through common shares at C$1.05 each.
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.
The deal was conducted by agents Macquarie Capital Markets Canada Ltd. and Dundee Securities Ltd. The company will also raise C$2 million on a non-brokered basis. The C$2 million, non-brokered portion has not yet settled.
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.
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$14,110,500
|
| Agents: | Macquarie Capital Markets Canada Ltd. and Dundee Securities Ltd.
|
| 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$8,073,000
|
| Units: | 8.97 million
|
| Price: | C$0.90
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.25
|
|
|
| Shares
|
| Amount: | C$6,037,500
|
| Shares: | 5.75 million
|
| Price: | C$1.05
|
| Warrants: | No
|
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