Deal brokered by PI Financial; funds used for exploration, development
By Devika Patel
Knoxville, Tenn., April 29 - Amarillo Gold Corp. said its private placement of units with agent PI Financial Corp. has been fully subscribed. The deal priced for C$10 million on April 13, and the company settled an initial tranche for C$8.37 million on Friday.
The company is selling units of one common share and one half-share warrant at C$1.50 per unit on a commercially best-efforts basis. It sold 5,579,267 units in the first tranche.
Each whole warrant is exercisable at C$2.00 for 18 months. The strike price is a 25% premium to the April 12 closing share price of C$1.60.
Settlement of the second and final tranche is expected May 4.
Proceeds will be used for exploration and development of the company's Mara Rosa and Lavras do Sul projects in Brazil and general corporate purposes.
Based in Vancouver, B.C, Amarillo is a gold explorer.
| Issuer: | Amarillo Gold Corp.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$10 million
|
| Units: | 5,579,267 (in first tranche)
|
| Price: | C$1.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$2.00
|
| Agent: | PI Financial Corp.
|
| Pricing date: | April 13
|
| Settlement dates: | April 29 (for C$8,368,901), May 4
|
| Stock symbol: | TSX Venture: AGC
|
| Stock price: | C$1.60 at close April 12
|
| Market capitalization: | C$83.1 million
|
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