By Devika Patel
Knoxville, Tenn., April 2 - Magma Metals Ltd. announced plans for an A$8.24 million private placement of shares.
The company plans to sell 23.54 million ordinary shares at A$0.35 each.
Investors also will receive 11.77 million free options. Each option is exercisable at A$0.50 for two years.
The deal will be completed in two tranches, with an initial tranche of 10 million shares, or A$3.5 million, settling next week. The remaining 13.54 million shares and all of the options will be issued after the company obtains shareholder approval.
Carmichael Capital Markets will lead a syndicate of agents for this deal, which also includes Southern Cross Equities and Cormark Securities Inc.
Proceeds will be used for project surveys, drilling, administration costs and working capital.
Magma is a mining and exploration company based in Perth, Australia.
| Issuer: | Magma Metals Ltd.
|
| Issue: | Ordinary shares and options
|
| Amount: | A$8,239,000
|
| Shares: | 23.54 million
|
| Price: | A$0.35
|
| Options: | 11.77 million
|
| Option expiration: | Two years
|
| Option strike price: | A$0.50
|
| Agents: | Carmichael Capital Markets (lead), Southern Cross Equities, Cormark Securities Inc.
|
| Pricing date: | April 2
|
| Stock symbol: | Australia: MMB
|
| Stock price: | A$0.41 at close April 2
|
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