Deal with C$5 million greenshoe to be conducted by CIBC and Fraser
By Devika Patel
Knoxville, Tenn., Oct. 18 - Gold Canyon Resources Inc. said it has arranged a C$10.06 million private placement of stock. The deal will be conducted on a bought-deal basis by a syndicate of underwriters led by CIBC and Fraser Mackenzie Ltd. and has a C$5 million greenshoe.
Gold Canyon will sell 1.3 million common shares at C$2.35 apiece, a 5.62% discount to the Oct. 17 closing share price of C$2.49. It also will sell 2.5 million flow-through common shares at C$2.80 apiece, a 12.45% premium to the Oct. 17 closing share price.
Settlement is expected on Nov. 3.
Proceeds will be used for exploration and development of the Springpole Gold Project and general corporate purposes.
Gold Canyon is a mineral and precious metals exploration company based in Vancouver, B.C.
| Issuer: | Gold Canyon Resources Inc.
|
| Issue: | Common shares, flow-through common shares
|
| Amount: | C$10,055,000
|
| Greenshoe: | C$5 million
|
| Warrants: | No
|
| Underwriters: | CIBC and Fraser Mackenzie Ltd. (leads)
|
| Pricing date: | Oct. 18
|
| Settlement date: | Nov. 3
|
| Stock symbol: | TSX Venture: GCU
|
| Stock price: | C$2.49 at close Oct. 17
|
| Market capitalization: | C$230.18 million
|
|
|
| Common stock
|
| Amount: | C$3,055,000
|
| Shares: | 1.3 million
|
| Price: | C$2.35
|
|
|
| Flow-through stock
|
| Amount: | C$7 million
|
| Shares: | 2.5 million
|
| Price: | C$2.80
|
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