By Sheri Kasprzak
New York, June 1 - Cusac Gold Mines Ltd. wrapped its previously announced private placement of units and convertible debentures for C$5,746,089.
The company sold 3,749,225 units at C$0.24 each; 6,657,500 flow-through units at C$0.27 each; and 813 convertible debentures at C$3,750 each.
The non flow-through units consist of one share and one warrant with each warrant exercisable at C$0.35 for one year.
The flow-through units are comprised of one share and one half-share warrant with each whole warrant exercisable at C$0.35 for one year.
The 18-month debentures bear interest at 11% annually and are convertible into common shares at C$0.305 each.
The debentures include warrants for 6,147 shares, exercisable at C$0.35 each through May 31, 2007.
The deal priced on March 24 as including 1,000 debentures; 5,555,556 flow-through units; and 3,125,000 non flow-through units.
M Partners Inc. and Oberon Securities LLC were the placement agents.
Proceeds from the debentures will be used to resume gold production on the company's Table Mountain gold mine in northern British Columbia. The proceeds from the flow-through units will be used for exploration on the company's Taurus II open-pit target near the Table Mountain property, and the proceeds from the common units will be used for working capital.
Located in Vancouver, B.C., Cusac is a gold exploration company.
| Issuer: | Cusac Gold Mines Ltd.
|
| Amount: | C$5,746,089
|
| Stock symbol: | Toronto: CQC
|
| Stock price: | C$0.30 at close March 24
|
| Stock price: | C$0.305 at close May 31
|
|
|
| Convertible debentures
|
| Issue: | Convertible debentures
|
| Amount: | C$3,048,750
|
| Maturity: | 18 months
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Conversion price: | C$0.305
|
| Warrants: | For 6,147 shares
|
| Warrant strike price: | C$0.35
|
| Warrant expiration: | May 31, 2007
|
| Placement agent: | M Partners Inc. and Oberon Securities LLC
|
| Pricing date: | March 24
|
| Settlement date: | June 1
|
|
|
| Units with flow-through shares
|
| Issue: | Units of one flow-through share and one half-share warrant
|
| Amount: | C$1,797,525
|
| Units: | 6,657,500
|
| Price: | C$0.27
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.35
|
| Placement agent: | M Partners Inc. and Oberon Securities LLC
|
| Pricing date: | March 24
|
| Settlement date: | May 31
|
|
|
| Units with non flow-through shares
|
| Issue: | Units of one non flow-through share and one warrant
|
| Amount: | C$899,814
|
| Units: | 3,749,225
|
| Price: | C$0.24
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.35
|
| Placement agent: | M Partners Inc. and Oberon Securities LLC
|
| Pricing date: | March 24
|
| Settlement date: | May 31
|
|
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