Up to C$4 million of proceeds from flow-through units financing
By Marisa Wong
Madison, Wis., May 26 - Altima Resources Ltd. announced that it has negotiated a private placement of flow-through and non-flow-through units for proceeds of up to C$6 million.
Altima will issue up to 80 million flow-through units at a price of C$0.05 per unit for proceeds of up to C$4 million and non-flow-through units at a price of C$0.05 per unit for the remainder of the proceeds.
Each flow-through unit will consist of one flow-through common share and one share purchase warrant. Each non-flow-through unit will consist of one non-flow-through share and one share purchase warrant.
Each warrant acquired as part of a flow-through unit entitles the holder to purchase one non-flow-through share, exercisable at C$0.10 per share for one year. Each warrant acquired as part of a non-flow-through unit entitles the holder to purchase one non-flow-through share, exercisable at C$0.10 per share for two years. The warrant strike prices represent an 81.82% premium to the May 25 closing share price of C$0.055.
Proceeds of the flow-through financing will be used for new exploratory drilling in the company's Chambers-Ferrier area properties. Proceeds from the non-flow-through financing will be used for general working capital purposes and the recompletion and stimulation of a previously productive well produced through the Chambers Conoco Phillips gathering system and plant.
Altima is an oil and gas exploration and production company based in Vancouver, B.C.
| Issuer: | Altima Resources Ltd.
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| Issue: | Flow-through, non-flow-through units
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| Amount: | Up to C$6 million
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| Pricing date: | May 26
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| Stock symbol: | TSX Venture: ARH
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| Stock price: | C$0.055 at close May 25
|
| Market capitalization: | C$9.68 million
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|
|
| Flow-through units
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| Price: | C$0.05
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| Units: | Up to 80 million
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| Warrants: | One warrant per unit to purchase one non-flow-through share
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| Warrant expiration: | One year
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| Warrant strike price: | C$0.10
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|
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| Non-flow-through units
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| Price: | C$0.05
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| Warrants: | One warrant per unit to purchase one non-flow-through share
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.10
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