Proceeds to be used to explore, develop Lac Cinquante uranium deposit
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., March 7 - Kivalliq Energy Corp. said it plans a private placement of stock. It will raise C$7.8 million on a non-brokered basis and C$10.01 million through a syndicate of underwriters led by Canaccord Genuity Corp. and including Raymond James Ltd., Dundee Securities Ltd., Haywood Securities Inc. and Versant Partners Inc. The deal has a C$2.5 million greenshoe.
In the non-brokered deal, the company will sell 10 million common shares at C$0.78 apiece. The price per share reflects a 4.88% discount to the March 4 closing share price of C$0.82.
In the brokered offering, Kivalliq will sell 11.12 million flow-through shares at C$0.90 per flow-through share. The price per share is a 9.76% premium to the March 4 closing share price.
The exploration company doesn't have revenues, so the financing was a way to "raise capital to execute" a planned C$17 million exploration budget over the year, James Paterson, chief executive officer, told Prospect News.
"From what we understand, [the brokered portion of the deal] was done within a few hours of being announced," he said. As for the non-brokered portion, "we already have investors that have expressed interest.
"It's a pretty hot market," he added. "The level of interest is very high."
Proceeds will be used to explore and develop Kivalliq's high-grade Lac Cinquante uranium deposit and for general working capital purposes.
Kivalliq is a uranium exploration and development company based in Vancouver, B.C.
| Issuer: | Kivalliq Energy Corp.
|
| Issue: | Flow-through shares, common shares
|
| Amount: | C$17,808,000
|
| Warrants: | No
|
| Pricing date: | March 7
|
| Stock symbol: | TSX Venture: KIV
|
| Stock price: | C$0.82 at close March 4
|
| Market capitalization: | C$81.63 million
|
|
|
| Common shares
|
| Amount: | C$7.8 million
|
| Shares: | 10 million
|
| Price: | C$0.78
|
| Underwriters: | Non-brokered
|
|
|
| Flow-through shares
|
| Amount: | C$10,008,000
|
| Shares: | 11.12 million
|
| Price: | C$0.90
|
| Underwriters: | Canaccord Genuity Corp., Raymond James Ltd., Dundee Securities Ltd., Haywood Securities Inc. and Versant Partners Inc. (for C$10,008,000)
|
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