By Sheri Kasprzak
New York, March 16 - Eastern Platinum Ltd. said it intends to raise C$130 million in a private placement.
Eastern plans to issue 104 million subscription receipts at C$1.25 each.
Each receipt is exchangeable for units of one share and one half-share warrant once the company completes its acquisitions of three private companies.
The whole warrants allow for the purchase of another share at C$1.80 each for three years.
A syndicate of underwriters led by GMP Securities LP and Canaccord Capital Corp. and including Orion Securities Inc., Raymond James Ltd. and Wellington West Capital Markets has an over-allotment option for up to 16 million receipts.
The placement is scheduled to close March 28.
Proceeds will be held in escrow until those acquisitions are completed.
Of the proceeds, C$27.7 million will be used for the acquisition. Some of the proceeds will be used for exploration and development on the company's Zandfontein and Maroelabult mines and for other development costs. The rest will be used for working capital and general corporate purposes.
Based in Vancouver, B.C., Eastern is a platinum exploration company.
| 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$130 million
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| Subscription receipts: | 104 million
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| Greenshoe: | For 16 million receipts
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| Price: | C$1.25
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Three years
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| Warrant strike price: | C$1.80
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| Underwriters: | GMP Securities LP (lead), Canaccord Capital Corp. (lead), Orion Securities Inc., Raymond James Ltd., Wellington West Capital Markets
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| Pricing date: | March 16
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| Settlement date: | March 28
|
| Stock symbol: | Toronto: ELR
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| Stock price: | C$1.26 at close March 16
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