Published on 5/31/2016 in the Prospect News PIPE Daily.
Colorado Resources wraps C$2.09 million of C$4.73 million units sale
Deal offers two types of units at C$0.35 per unit and C$0.42 per unit
By Devika Patel
Knoxville, Tenn., May 31 – Colorado Resources Ltd. said it raised C$2.09 million in the second tranche of a non-brokered private placement of units and increased the deal to C$4.73 million. The deal priced for C$4.03 million on May 4 and was increased to C$4.59 million on May 19, when the company raised C$1,732,585.
The company is now selling 9,274,930 units of one common share and one warrant at C$0.35 per unit and 3,542,344 flow-through units of one flow-through common share and one half-share warrant at C$0.42 per unit.
Each unit warrant will be exercisable at C$0.50 for two years. Each whole flow-through unit warrant will be exercisable at C$0.60 for two years. The strike prices are 42.86% and 71.43% premiums to the May 3 closing share price of C$0.35.
In the first tranche, the company sold 2,211,430 units and 2,282,344 flow-through units. Colorado Resources sold 4,463,500 units and 1.26 million flow-through units in the second tranche and will sell 2.6 million units in the third tranche on June 1.
Proceeds will be used for exploration.
The Kelowna, B.C., company explores for gold and silver.
Issuer: | Colorado Resources Ltd.
|
Issue: | Units of one common share and one warrant, flow-through units of one flow-through common share and one half-share warrant
|
Amount: | C$4,734,010
|
Warrant expiration: | Two years
|
Agent: | Non-brokered
|
Pricing date: | May 4
|
Upsized: | May 19, May 31
|
Settlement date: | May 19 (for C$1,732,585), May 31 (for C$2,091,425), June 1 (for C$910,000)
|
Stock symbol: | TSX Venture: CXO
|
Stock price: | C$0.35 at close May 3
|
Market capitalization: | C$22.71 million
|
|
Units
|
Amount: | C$3,246,226
|
Units: | 9,274,930
|
Price: | C$0.35
|
Warrants: | One warrant per unit
|
Warrant strike price: | C$0.50
|
|
Flow-through units
|
Amount: | C$1,487,785
|
Units: | 3,542,344
|
Price: | C$0.42
|
Warrants: | One half-share warrant per unit
|
Warrant strike price: | C$0.60
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.