C$1.51 million greenshoe fully exercised; deal finances exploration
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., June 14 - Hunt Mining Corp. said it settled an C$11.54 million private placement of units on a bought-deal basis through underwriter Macquarie Capital Markets Canada Ltd.
The offering priced for C$10.04 million with a C$1.51 million greenshoe on May 25.
The company sold 25,645,000 units of one common share and one half-share warrant at C$0.45 per unit. Of the units, 3,345,000 were part of the fully exercised greenshoe.
The whole warrants are exercisable at C$0.65 for two years. The strike price is a 22.64% premium to the May 24 closing share price of C$0.53.
"For me, looking at it, it was key to have institutional involvement as well as filling the over-allotment," said Dean Stuart, investor relations for the company, in an interview with Prospect News. The deal successfully completed those objectives, he said.
Additionally, another C$8.3 million "could be added to the treasury," Stuart explained, via the exercise of about 12.8 million warrants. He also noted that the company had another 14 million warrants outstanding from a financing done in November 2010. With a strike price of C$0.35, that could bring in another C$4 million to C$5 million.
Currently, he said, the company has about C$3 million to C$4 million in the bank, plus about C$10.5 million from the private placement.
Proceeds will be used for exploration and development work at the company's properties in the Deseado Massif precious metal region of Santa Cruz, Argentina, and for general working capital and corporate purposes.
"All in all, we'll be drilling quite a bit," Stuart said.
Hunt Mining is a gold and silver mining company based in Liberty Lake, Wash.
| Issuer: | Hunt Mining Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$11,540,250 (including C$1,505,250 greenshoe)
|
| Units: | 25,645,000
|
| Price: | C$0.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.65
|
| Underwriter: | Macquarie Capital Markets Canada Ltd.
|
| Pricing date: | May 25
|
| Settlement date: | June 14
|
| Stock symbol: | TSX Venture: HMX
|
| Stock price: | C$0.53 at close May 24
|
| Market capitalization: | C$35.92 million
|
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