By Sheri Kasprzak
Atlanta, April 22 - Eastern Platinum Ltd. said it has closed a private placement for C$34,083,162.
The company sold 22,722,108 subscription receipts at C$1.50 each. The total includes 2,722,108 shares sold under a partially exercised greenshoe.
Insiders of the company bought 250,000 receipts.
Every four receipts are exchangeable for one unit upon the completion of the amalgamation of Elgin Resources Inc. and Jonpol Explorations Ltd. into Eastern Platinum. The units include one share and one half-share warrant. The full warrants allow for an additional share at C$2.00 each for three years.
Under the terms of the amalgamation, Elgin and Jonpol will convert their shares into shares of Eastern Platinum on a basis of one share of Eastern Platinum for all shares of Elgin and one share of Eastern Platinum for every four shares of Jonpol. The amalgamation is expected to be complete by April 25.
A syndicate of underwriters co-led by GMP Securities Ltd. and Canaccord Capital Corp. and including Salman Partners Inc. and Raymond James Ltd. had been granted an over-allotment option for up to 3,333,333 additional receipts.
Based in Vancouver, B.C., Eastern Platinum is a platinum exploration company. It plans to use the proceeds from the deal for mining and exploration in South Africa.
| Issuer: | Eastern Platinum Ltd.
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| Issue: | Subscription receipts exchangeable for units of one share and one half-share warrant
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| Amount: | C$34,083,162
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| Receipts: | 22,722,108 (includes greenshoe for 2,722,108)
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| Price: | C$1.50
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| Warrants: | One half-share warrant per unit, upon exchange of receipts
|
| Warrant expiration: | Three years
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| Warrant strike price: | C$2.00
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| Underwriters: | GMP Securities Ltd. (lead); Canaccord Capital Corp. (lead); Salman Partners Inc.; Raymond James Ltd.
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| Pricing date: | April 5
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| Settlement date: | April 22
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| Stock price: | C$0.355 at close April 5 (for Jonpol); C$1.45 at close April 5 (for Elgin)
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| Stock price: | C$0.330 at close April 22 (for Jonpol); C$1.35 at close April 22 (for Elgin)
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