Deal with C$3.75 million greenshoe funds acquisition of Madsen Project
By Devika Patel
Knoxville, Tenn., Feb. 6 - Laurentian Goldfields Ltd. said it increased its private placement of units to C$15 million with a C$3.75 million greenshoe from C$10 million with a C$2.5 million greenshoe. The deal priced on Jan. 24.
The company will now sell 60 million units of one common share and one half-share warrant at C$0.25 per unit on a best-efforts basis. The whole warrants are exercisable at C$0.50 each for 30 months.
The warrant strike price is a 525% premium to the Jan. 23 closing share price of C$0.08.
The deal will be conducted by a syndicate of agents led by Macquarie Capital Markets Canada Ltd. and including Canaccord Genuity Corp. and Axemen Resource Capital.
Settlement is expected Feb. 18.
Proceeds will be used to complete the company's planned acquisition of the Madsen Gold Project, for working capital and for general corporate purposes.
Laurentian is a gold exploration and development company based in Vancouver, B.C.
| Issuer: | Laurentian Goldfields Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$15 million
|
| Greenshoe: | C$3.75 million
|
| Units: | 60 million
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 30 months
|
| Warrant strike price: | C$0.50
|
| Agents: | Macquarie Capital Markets Canada Ltd. (lead), Canaccord Genuity Corp. and Axemen Resource Capital
|
| Pricing date: | Jan. 24
|
| Upsized: | Feb. 6
|
| Settlement date: | Feb. 18
|
| Stock symbol: | TSX Venture: LGF
|
| Stock price: | C$0.08 at close Jan. 23
|
| Market capitalization: | C$701,490
|
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