By Devika Patel
Knoxville, Tenn., Dec. 11 - KWG Resources Inc. said it plans a private placement of units to raise C$3 million.
The company plans to sell C$1 million of non flow-through units at C$0.10 each. It also will sell C$2 million of flow-through units at C$0.12 each.
Northern Securities Inc., the agent, has a greenshoe for up to 20% of the deal size.
Each non flow-through unit will consist of one non flow-through share and one non flow-through warrant. Each warrant from the non flow-through units will be exercisable at C$0.15 for two years.
Each flow-through unit will consist of one flow-through share and one half-share warrant. Each whole warrant from the flow-through units will be exercisable at C$0.18 for two years.
Northern Securities will be paid a 7% cash commission and broker warrants, each exercisable for two years, to acquire a number of units equal to 10% of the number of units and flow-through units sold.
Proceeds will provide funding to KWG's subsidiary, Debuts Diamonds Inc.
KWG is a mineral exploration company based in Montreal.
| Issuer: | KWG Resources Inc.
|
| Issue: | Units of one non flow-through share and one non flow-through warrant; units of one flow-through share and one half-share warrant
|
| Amount: | C$3 million
|
| Greenshoe: | 20%
|
| Agent: | Northern Securities Inc.
|
| Fees: | 7% in cash; 10% in warrants
|
| Pricing date: | Dec. 11
|
| Stock symbol: | TSX Venture: KWG
|
| Stock price: | C$0.10 at close Dec. 11
|
|
|
| Non flow-through units
|
| Amount: | C$1 million
|
| Price: | C$0.10
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15
|
|
|
| Flow-through units
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| Amount: | C$2 million
|
| Price: | C$0.12
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.18
|
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