By Devika Patel
Knoxville, Tenn., April 17 - Hawthorne Gold Corp. said it settled the first tranche of a C$17 million private placement of units and flow-through common shares, raising C$11.74 million. The deal priced on March 17 for C$15 million and was increased and amended on April 2.
The company sold 3,443,009 units for C$6.03 million and 2,930,884 flow-through common shares for C$5.72 million.
Hawthorne Gold plans to sell 4 million units total at C$1.75 apiece for C$7 million.
Each unit consists of one common share and one half-share warrant. Each whole warrant will be exercisable at C$2.25 for two years.
The offering also includes a total of up to 5,128,205 flow-through common shares at C$1.95 per share forC$10 million.
The company originally had planned to sell only 7.5 million units at C$2.00 apiece. The warrants originally had a strike price of C$2.50.
Blackmont Capital Inc. is the lead agent of a syndicate that also includes J.F. Mackie & Co. Ltd.
Proceeds will be used to fund field work on the Frasergold deposit.
Hawthorne Gold is a Vancouver, B.C.-based gold exploration and development company with key properties located in British Columbia.
| Issuer: | Hawthorne Gold Corp.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$17 million
|
| Agent: | Blackmont Capital Inc. (lead), J.F. Mackie & Co. Ltd.
|
| Pricing date: | March 17
|
| Revised: | April 2
|
| Settlement date: | April 17 (for C$11,740,490)
|
| Stock symbol: | TSX Venture: HGC
|
| Stock price: | C$2.25 at close March 14
|
|
|
| Units
|
| Amount: | C$7 million
|
| Units: | 4 million
|
| Price: | C$1.75
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.25
|
|
|
| Shares
|
| Amount: | C$10 million
|
| Shares: | 5,128,205
|
| Price: | C$1.95
|
| Warrants: | No
|
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