Proceeds to be used to expand gold mine in Chile
By Angela McDaniels
Tacoma, Wash., May 9 - Lachlan Star Ltd. entered into agreements to place A$2.86 million of shares with sophisticated and accredited investors in Canada and Europe, according to a company news release.
The price is A$0.014 per share, which is a 7.69% premium to the company's A$0.013 closing share price on May 4.
The purchasers will also receive one two-year option per share. The strike price is A$0.02 per option, which is a 53.85% premium to the May 4 closing share price.
The proceeds of the brokered placement will be used for mine expansion at the company's CMD gold mine in Chile. Settlement is expected to occur by May 23.
The company noted that it plans to complete a one-for-60 reverse stock split.
Lachlan Star is a gold and copper mining company based in Perth, Australia.
| Issuer: | Lachlan Star Ltd.
|
| Issue: | Shares
|
| Amount: | A$2,856,000 million
|
| Shares: | 204 million
|
| Price: | A$0.014
|
| Options: | One per share
|
| Option expiration: | Two years
|
| Option strike price: | A$0.02
|
| Pricing date: | May 9
|
| Stock symbol: | Australia: LSA
|
| Stock price: | A$0.013 at close May 9
|
| Market capitalization: | A$41.66 million
|
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