New Issue: Magellan wraps C$21.25 million units, subscription receipts placement

By Devika Patel

Knoxville, Tenn., Dec. 24 - Magellan Minerals Ltd. said it completed a C$21.25 million private placement of units and subscription receipts. The deal priced for C$20 million on Dec. 11.

The company sold 18,215,395 units of one common share and one half-share warrant at C$0.70 per unit and 12,143,601 subscription receipts at C$0.70 apiece.

Each whole warrant will be exercisable at C$1.00 for two years. Each subscription receipt will automatically convert into one unit upon completion of the company's planned acquisition of the Creporizinho gold mine in Brazil.

The deal was conducted by co-lead agents Toll Cross Securities Inc. and Dundee Securities Corp., along with Haywood Securities Inc.

Proceeds will be used for exploration and general working capital, and to acquire the Creporizinho gold mine.

The gold and bauxite explorer is based in Vancouver, B.C.

Issuer:	Magellan Minerals Ltd.
Issue:	Units of one common share and one half-share warrant, subscription receipts
Amount:	C$21,251,297
Price:	C$0.70
Agent:	Toll Cross Securities Inc. and Dundee Securities Corp. (co-leads), Haywood Securities Inc.
Pricing date:	Dec. 10
Settlement date:	Dec. 23
Stock symbol:	TSX Venture: MNM
Stock price:	C$0.89 at close Dec. 10
Market capitalization:	C$47.4 million
Units
Amount:	C$12,750,777
Units:	18,215,395
Warrants:	One half-share warrant per unit
Warrant expiration:	Two years
Warrant strike price:	C$1.00
Subscription receipts
Amount:	C$8,500,521
Receipts:	12,143,601
Warrants:	No

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