Greenstone also buys a 2% royalty on Gunnison Project for $8 million
By Devika Patel
Knoxville, Tenn., Nov. 17 – Excelsior Mining Corp. said it received shareholder approval for a $4 million private placement of stock with Greenstone Resources LP and a $3 million non-brokered private placement of stock. The deals priced on Oct. 8.
The company will sell common shares at C$0.23 per share in both deals. The price per share reflects a 4.17% discount to the Oct. 7 closing share price of C$0.24.
Settlement will occur in U.S. dollars, and the exact number of shares issued has been determined based on an exchange rate of C$1.00 per $0.7533, which was determined using the average of the noon exchange rate reported by the Bank of Canada for the 10 days preceding pricing. Based on the fixed exchange rate, Greenstone will buy 23,081,362 shares. After this placement, Greenstone will own 55,550,869 shares, or about 40.14% of Excelsior's outstanding common stock.
Greenstone will also purchase a 2% gross revenue royalty on the Gunnison Project for $8 million.
The proceeds will be used to fund the Johnson Camp Copper Mine from Nord Resources Corp. for $12 million, to advance 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.
|
| Issue: | Common stock
|
| Amount: | $7 million
|
| Price: | C$0.23
|
| Warrants: | No
|
| Agent: | Non-brokered (for $3 million)
|
| Investor: | Greenstone Resources LP (for $4 million)
|
| Pricing date: | Oct. 8
|
| Stock symbol: | TSX Venture: MIN
|
| Stock price: | C$0.24 at close Oct. 7
|
| Market capitalization: | C$25.95 million
|
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