Dundee Securities, Salman Partners are agents; deal funds exploration
By Devika Patel
Knoxville, Tenn., Aug. 8 - Lachlan Star Ltd. said it priced a A$13.12 million private placement of special warrants. The deal, which was announced Aug. 3, has a A$1.97 million greenshoe.
The company will sell 16 million special warrants at A$0.82 each, which is a 1.21% discount to the Aug. 5 closing share price of A$0.83.
The special warrants are convertible into units of one ordinary share and one half-share warrant, with each whole warrant exercisable at A$1.20 for two years. The strike price reflects a 44.58% premium to the Aug. 5 closing share price.
Settlement is expected Aug. 23.
The deal will be conducted by a syndicate of agents, which includes Dundee Securities Ltd. and Salman Partners Inc.
Proceeds will be used for development and exploration of the company's CMD Gold Mine in Chile and for general working capital purposes.
Lachlan Star is a gold and copper mining company based in Perth, Australia.
| Issuer: | Lachlan Star Ltd.
|
| Issue: | Special warrants convertible into units of one ordinary share and one half-share warrant
|
| Amount: | A$13.12 million
|
| Greenshoe: | A$1,968,000
|
| Special warrants: | 16 million
|
| Price: | A$0.82
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | A$1.20
|
| Agents: | Dundee Securities Ltd., Salman Partners Inc.
|
| Announcement date: | Aug. 3
|
| Pricing date: | Aug. 8
|
| Settlement date: | Aug. 23
|
| Stock symbol: | Australia: LSA
|
| Stock price: | A$0.70 at close Aug. 8
|
| Market capitalization: | A$37.39 million
|
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