Deal comes on heels of C$1 million placements in November, December
By Susanna Moon
Chicago, Jan. 12 - Estrella Gold Corp. said it closed a non-brokered private placement of units for proceeds of C$1 million.
The company will sell 1.25 million units of one common share and one non-transferable warrant at C$0.80 per unit.
Each warrant is exercisable at C$1.20 per share until July 12, 2012. The warrant strike price represents a 4.35% premium to the company's closing price on Jan. 11.
The warrants are callable, at the issuer's option, after May 13, 2011 if the common shares trade at or above C$1.60 per share for 10 consecutive trading days.
Proceeds will be used for the phase 2 drill program at Colpayoc property, property acquisitions and working capital and general corporate purposes.
The company also completed non-brokered private placement of units for C$1 million in November and December.
On Dec. 3, Estrella sold its 2 million units of one common share and one warrant at C$0.50 apiece, with each warrant exercisable at C$0.80 until Dec. 3, 2012. The strike price was a 9.59% premium to the Dec. 2 closing share price of C$0.73.
Proceeds were slated for the Regional Andean Gold Exploration Program, working capital and general corporate purposes.
On Nov. 18, the company sold 2 million units of one common share and one warrant at C$0.50 apiece for C$1 million. Each warrant is exercisable at C$0.80 until Nov. 17, 2012. The strike price was a 60% premium to the Nov. 17 closing share price of C$0.50.
The gold resource explorer is based in Toronto.
| Issuer: | Estrella Gold Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1 million
|
| Units: | 1.25 million
|
| Price: | C$0.80
|
| Warrants: | One per unit
|
| Warrant expiration: | July 12, 2012
|
| Warrant strike price: | C$1.20
|
| Agent: | Non-brokered
|
| Settlement date: | Jan. 12
|
| Stock symbol: | Canada: EST
|
| Stock price: | C$1.15 at close Jan. 11
|
| Market capitalization: | C$15.55 million
|
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