Greenstone also buys a 2% royalty on Gunnison Project for $8 million
By Devika Patel
Knoxville, Tenn., Dec. 1 – Excelsior Mining Corp. said it received shareholder approval to raise $1.5 million in the first tranche of a $4 million private placement of stock with Greenstone Resources LP. The deal priced alongside a $3 million non-brokered private placement of stock on Oct. 8.
The company is selling 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. In the first tranche, the company sold 8,655,510 shares at $0.1733 to an affiliate of Greenstone.
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 acquire 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
|
| Agent: | Non-brokered (for $3 million)
|
| Investor: | Greenstone Resources LP (for $4 million)
|
| Pricing date: | Oct. 8
|
| Settlement date: | Dec. 1 (for $1.5 million)
|
| Stock symbol: | TSX Venture: MIN
|
| Stock price: | C$0.24 at close Oct. 7
|
| Market capitalization: | C$25.26 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
