Proceeds from units earmarked for resumed feasibility study on Coringa
By Marisa Wong
Madison, Wis., Dec. 2 – Magellan Minerals Ltd. said it raised C$1.06 million in the third and final 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 and C$1.44 million on Oct. 17.
The company sold 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, 14.38 million units in the second tranche and 10.62 million units in the final tranche.
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.
Proceeds will be used to complete a feasibility study on Magellan’s Coringa project, which had been suspended since July 2013 and was restarted in October, and for general working capital.
The gold and bauxite explorer is based in Vancouver, B.C.
| Issuer: | Magellan Minerals Ltd.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$3 million
|
| Units: | 30 million
|
| Price: | C$0.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.18
|
| Agent: | Non-brokered
|
| Announcement date: | Sept. 4
|
| Settlement dates: | Aug 28 (for C$500,000), Oct. 17 (for C$1,438,000), Dec. 2 (for C$1,062,000)
|
| Stock symbol: | TSX Venture: MNM
|
| Stock price: | C$0.075 at close Nov. 28
|
| Market capitalization: | C$11.5 million
|
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