Proceeds fund development of the Fire Creek project, working capital
By Devika Patel
Knoxville, Tenn., Nov. 2 - Klondex Mines Ltd. said it will conduct a C$20 million private placement of subscription receipts. The deal has a 15% greenshoe. It also will raise $7 million in a debt private placement.
The company will sell 14,815,000 receipts, which convert into units of one common share and one half-share warrant, at C$1.35 per receipt.
Each whole warrant is exercisable at C$1.75 for two years. The strike price reflects a 24.11% premium to the Nov. 1 closing share price of C$1.41.
Settlement is expected on Nov. 20.
The offering will be conducted on a fully marketed best-efforts basis through a syndicate of agents led by GMP Securities LP and including MGI Securities Inc., RBC Dominion Securities Inc., Fraser Mackenzie Ltd. and Mackie Research Capital Corp. K2 & Associates Investment Management Inc. will participate.
Concurrent with the closing of the equity offering, the company expects to issue $7 million of senior unsecured notes in a private placement. The notes will be accompanied by up to 525,000 warrants, each exercisable at C$1.55 for 18 months. The strike price is a 9.93% premium to the Nov. 1 closing price.
Proceeds will be used for the development of the Fire Creek gold project in Nevada and ongoing operating and working capital requirements.
Vancouver, B.C.-based Klondex is a gold exploration company.
| Issuer: | Klondex Mines Ltd.
|
| Issue: | Subscription receipts convertible into units of one common share and one half-share warrant, senior unsecured notes
|
| Amount: | C$27,000,250
|
| Pricing date: | Nov. 2
|
| Settlement date: | Nov. 20
|
| Stock symbol: | Toronto: KDX
|
| Stock price: | C$1.41 at close Nov. 1
|
| Market capitalization: | C$64.43 million
|
|
|
| Receipts
|
| Amount: | C$20,000,250
|
| Greenshoe: | 15%
|
| Receipts: | 14,815,000
|
| Price: | C$1.35
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.75
|
| Agents: | GMP Securities LP (lead), MGI Securities Inc., RBC Dominion Securities Inc., Fraser Mackenzie Ltd. and Mackie Research Capital Corp.
|
| Investor: | K2 & Associates Investment Management Inc.
|
|
|
| Notes
|
| Amount: | C$7 million
|
| Warrants: | 525,000
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.55
|
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