Bought-deal units offering funds exploration of Comtois Gold Project
By Devika Patel
Knoxville, Tenn., March 23 - Maudore Minerals Ltd. said it concluded a private placement of units. The deal priced for C$2 million with a C$1 million greenshoe on March 10 and raised C$2.07 million.
The company sold 258,202 units at C$8.00 apiece. Of the units, 250,000 were sold on a bought-deal basis and the remaining 8,202 were part of the partially exercised greenshoe.
Each unit consists of one flow-through common share and one half-share warrant, with each whole warrant exercisable at C$8.00 for 18 months. The strike price reflects a 58.42% premium to the March 9 closing share price of C$5.05.
Proceeds will be used for exploration on the company's Comtois Gold Project and the associated land area.
"Hard on the heels of our drilling results announcement at the beginning of the week, we look forward to using these proceeds to continue exploring the Comtois Gold Project," chairman and chief executive officer Ron Shorr said in a press release on Wednesday. "This is the third announcement of funds raised since the end of 2010, totally about $11½ million, all at $8.00 per share, a sizeable premium to the share price. This has resulted in only 8% dilution (fully diluted) and has funded all of Maudore's expected high level of exploration activities for the balance of this year."
Maudore is a gold exploration company based in Montreal.
| Issuer: | Maudore Minerals Ltd.
|
| Issue: | Units of one flow-through common share and one half-share warrant
|
| Amount: | C$2,065,616 (including C$65,616 greenshoe)
|
| Units: | 258,202
|
| Price: | C$8.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$8.00
|
| Pricing date: | March 10
|
| Settlement date: | March 23
|
| Stock symbol: | TSX Venture: MAO
|
| Stock price: | C$5.05 at close March 9
|
| Market capitalization: | C$125.26 million
|
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