Offering’s proceeds earmarked to develop the Gunnison Copper Project
By Toni Weeks
San Luis Obispo, Calif., Sept. 5 – Excelsior Mining Corp. said it closed the first tranche of a $10 million financing and strategic partnership agreement with an affiliate of Greenstone Resources LP. The deal was announced on Aug. 13 and will settle in two tranches.
According to a press release, the company sold 20.58 million common shares at C$0.34 per share for proceeds of $6,393,341.64. The per-share price is a 50% premium to the closing share price of C$0.24 on Aug. 12.
The company is seeking shareholder approval at a meeting on Sept. 30 for a second tranche, which will consist of the sale of $3,606,658.36 of common shares to Greenstone at C$0.34 per share. The exact number of shares will be determined by the Bank of Canada exchange rate on the day of the meeting. If approved, the second tranche will close within 15 business days after the meeting.
As part of the transactions, Greenstone will have the right to nominate two directors to the Excelsior Board, one at the closing of each tranche.
Proceeds will be used for continued development of the Gunnison Copper Project and for general corporate and working capital purposes.
Based in Vancouver, B.C., Excelsior is a copper exploration company.
| Issuer: | Excelsior Mining Corp.
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| Issue: | Common shares
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| Amount: | $10 million
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| Shares: | 20.58 million (in first tranche)
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| Price: | C$0.34
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| Warrants: | No
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| Investor: | Greenstone Resources LP
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| Pricing date: | Aug. 13
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| Settlement date: | Sept. 5 (for $6,393,341.64)
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| Stock symbol: | TSX Venture: MIN
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| Stock price: | C$0.24 at close Aug. 12
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| Market capitalization: | C$21.82 million
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