Company offers receipts at C$0.30 each with a C$3.75 million greenshoe
By Devika Patel
Knoxville, Tenn., Dec. 6 - Klondex Mines Ltd. said it will raise about C$60 million in a private placement of subscription receipts and senior secured notes.
The company will sell the receipts at C$1.45 apiece. The price per receipt is a 7.05% discount to the Dec. 5 closing share price, C$1.56.
Each receipt converts for free to a common share.
The deal will be conducted by a syndicate of agents led by GMP Securities LP and including Byron Capital Markets Ltd., MGI Securities Inc., Mackie Research Capital Corp., M Partners Inc., Jones, Gable & Co. Ltd. and PI Financial Corp.
Settlement is expected Dec. 17.
The company said it has also finalized terms for a private placement of notes to raise about C$25 million.
The 11% notes are due June 30, 2017. In addition, the investors will receive 124 warrants per C$1,000 of notes.
The company also plans a C$35 million gold financing package with Franco-Nevada Corp., which includes a 2.5% royalty on all minerals produced from the company's properties. It is conducting the financings in connection with its planned acquisition of the Midas mine and ore milling facility.
Proceeds will be used for the acquisition and to repay C$7 million of notes.
Based in Vancouver, B.C., Klondex explores for gold.
| Issuer: | Klondex Mines Ltd.
|
| Issue: | Subscription receipts, senior secured notes
|
| Amount: | C$60 million (approximate)
|
| Pricing date: | Dec. 6
|
| Stock symbol: | Toronto: KDX
|
| Stock price: | C$1.56 at close Dec. 5
|
| Market capitalization: | C$102.77 million
|
|
|
| Receipts
|
| Amount: | C$35 million (approximate)
|
| Price: | C$1.45
|
| Warrants: | No
|
| Agents: | GMP Securities LP (lead), Byron Capital Markets Ltd., MGI Securities Inc., Mackie Research Capital Corp., M Partners Inc., Jones, Gable & Co. Ltd. and PI Financial Corp.
|
| Settlement date: | Dec. 17
|
|
|
| Notes
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| Amount: | C$25 million (approximate)
|
| Maturity: | June 30, 2017
|
| Coupon: | 11%
|
| Warrants: | 124 warrants per C$1,000 of notes
|
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