Agent syndicate raises funds for exploration, development activities
By Devika Patel
Knoxville, Tenn., March 23 - Mega Precious Metals Inc. said it completed a C$12.32 million private placement of units. The deal priced for C$15 million with a C$2.25 million greenshoe on Feb. 29.
The company sold 5,190,268 units of one common share and one half-share warrant at C$0.61 per unit and 12,047,528 flow-through units of one flow-through common share and one half-share warrant at C$0.76 per unit.
Each whole two-year warrant is exercisable at C$0.85, a 23.19% premium to the Feb. 28 closing share price of C$0.69.
A syndicate of agents, led by Jennings Capital Inc. and including Fraser Mackenzie Ltd. and PowerOne Capital Markets Ltd., conducted the offering on a best-efforts basis.
Proceeds will be used for exploration and development activities and general corporate and working capital purposes.
Mega is a precious metals exploration company based in Thunder Bay, Ont.
| Issuer: | Mega Precious Metals Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$12,322,185
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.85
|
| Agent: | Jennings Capital Inc. (lead), Fraser Mackenzie Ltd. and PowerOne Capital Markets Ltd.
|
| Pricing date: | Feb. 29
|
| Settlement date: | March 23
|
| Stock symbol: | TSX Venture: MGP
|
| Stock price: | C$0.69 at close Feb. 28
|
| Market capitalization: | C$40.69 million
|
|
|
| Units
|
| Amount: | C$3,166,064
|
| Units: | 5,190,268
|
| Price: | C$0.61
|
|
|
| Flow-through units
|
| Amount: | C$9,156,121
|
| Units: | 12,047,528
|
| Price: | C$0.76
|
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