Dundee Securities, Salman were the agents; greenshoe fully exercised
By Devika Patel
Knoxville, Tenn., Aug. 29 - Lachlan Star Ltd. said it settled a A$15.09 million private placement of special warrants. The deal, which was announced Aug. 3, priced for A$13.12 million with a A$1.97 million greenshoe on Aug. 8.
The company sold 18.4 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. Of the warrants, 2.4 million were part of the fully exercised greenshoe.
Once the escrow release conditions are met, the special warrants will be exercisable at no cost 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.
The deal was conducted by a syndicate of agents that 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$15,088,000 (including A$1,968,000 greenshoe)
|
| Special warrants: | 18.4 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. 29
|
| Stock symbol: | Australia: LSA
|
| Stock price: | A$0.70 at close Aug. 8
|
| Market capitalization: | A$47 million
|
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