Proceeds used for development of the Fire Creek gold project in Nevada
By Devika Patel
Knoxville, Tenn., Oct. 1 - Klondex Mines Ltd. said it plans a C$19.45 million private placement of special warrants. The deal was announced as a C$15 million sale on Monday.
The company will sell 14.2 million special warrants at C$1.37 each, which is a 1.44% discount to the Sept. 30 closing share price of C$1.39. The special warrants are convertible into common shares for no additional consideration.
Settlement is expected Oct. 16.
The deal will be conducted by a syndicate of agents led by GMP Securities LP and including MGI Securities Inc., Mackie Research Capital Corp., M Partners Inc., Euro Pacific Canada Inc., Jones, Gable & Co. Ltd. and PI Financial Corp. on a best-efforts basis.
Proceeds will be used for development of the Fire Creek gold project in Nevada, general working capital requirements and debt repayment.
Vancouver, B.C.-based Klondex is a gold exploration company.
| Issuer: | Klondex Mines Ltd.
|
| Issue: | Special warrants convertible into common shares
|
| Amount: | C$19,454,000
|
| Special warrants: | 14.2 million
|
| Price: | C$1.37
|
| Warrants: | No
|
| Agent: | GMP Securities LP (lead), MGI Securities Inc., Mackie Research Capital Corp., M Partners Inc., Euro Pacific Canada Inc., Jones, Gable & Co. Ltd. and PI Financial Corp.
|
| Announcement date: | Sept. 30
|
| Pricing date: | Oct. 1
|
| Settlement date: | Oct. 16
|
| Stock symbol: | Toronto: KDX
|
| Stock price: | C$1.39 at close Sept. 30
|
| Market capitalization: | C$88.94 million
|
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