Proceeds expected to complete a feasibility study on Coringa project
By Devika Patel
Knoxville, Tenn., Sept. 23 – Magellan Minerals Ltd. said it raised C$1.5 million in the second tranche of a C$3 million non-brokered private placement of units. The deal priced on Sept. 4 and raised C$500,000 on Aug. 28.
The company is selling 30 million units of one common share and a half-share warrant at C$0.10 per unit. It sold 5 million units in the first tranche and 15 million units in the second.
Each whole warrant will be exercisable at C$0.18 for 18 months. The strike price reflects a 38.46% premium to the Aug. 27 closing share price of C$0.13.
Settlement of the final C$1 million tranche is expected Oct. 28.
Proceeds will be used to complete a feasibility study on Magellan’s Coringa project, which has been suspended since July 2013, and for general working capital.
The gold and bauxite explorer is based in Vancouver, B.C.
| Issuer: | Magellan Minerals Ltd.
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| Issue: | Units of one common share and a half-share warrant
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| Amount: | C$3 million
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| Units: | 30 million
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| Price: | C$0.10
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$0.18
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| Agent: | Non-brokered
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| Announcement date: | Sept. 4
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| Settlement date: | Aug 28 (for C$500,000), Sept. 23 (for C$1.5 million), Oct. 28 (for C$1 million)
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| Stock symbol: | TSX Venture: MNM
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| Stock price: | C$0.13 at close Aug. 27
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| Market capitalization: | C$10.31 million
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