By Laura Lutz
Washington, Feb. 5 - Keegan Resources Inc. increased the size of its previously announced private placement of units to C$15.125 million from C$11 million.
The non-brokered deal is now expected to include 5.5 million units at C$2.75 each.
Each unit will consist of one share and one half-share warrant. Each full warrant will be exercisable at C$3.25 for 18 months.
The expiry of the warrants may be accelerated to 30 days if, after nine months from issuance, the stock trades above C$4.00 for more than 20 consecutive trading days.
The deal priced on Jan. 25 as an offering of up to 4 million units. Settlement is expected on Feb. 8.
Proceeds will be used for drilling on the Esaase and Asumura gold properties in Ghana.
Keegan is a Vancouver, B.C.-based gold exploration and development company.
| Issuer: | Keegan Resources Inc.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$15.125 million
|
| Units: | 5.5 million
|
| Price: | C$2.75
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$3.25
|
| Placement agent: | Non-brokered
|
| Pricing date: | Jan. 25
|
| Upsized: | Feb. 5
|
| Settlement date: | Feb. 8
|
| Stock symbol: | TSX Venture: KGN
|
| Stock price: | C$2.95 at close Jan. 24
|
| Stock price: | C$3.50 at close Feb. 5
|
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