Proceeds used for development of the El Pilar project, working capital
By Devika Patel
Knoxville, Tenn., Nov. 17 - Mercator Minerals Ltd. said it arranged a C$20 million non-brokered private placement of units.
The company will sell 11,428,572 units of one common share and a quarter-share warrant at C$1.75 apiece.
Each whole warrant is exercisable at C$2.50 for three years. The strike price reflects a 46.2% premium to the closing share price of C$1.71 on Nov. 16.
Proceeds will be used to develop the El Pilar project and for general corporate and working capital purposes.
"Completion of this financing should allow Mercator to continue to rapidly advance our very attractive El Pilar heap leach copper project in Mexico towards a production decision until project funding is arranged," president and chief executive officer Bruce McLeod said in a press release. "With the recent successful completion of the performance test at our Mineral Park copper-molybdenum mine, cash flow from operations should start to become available for other activities in the second quarter of 2012, but, in the interim, this modest financing would support advancement of critical items so that we can continue on our path to growing copper production on a value-accretive basis for our shareholders."
Based in Vancouver, B.C., Mercator is a copper mining company.
| Issuer: | Mercator Minerals Ltd.
|
| Issue: | Units of one common share and a quarter-share warrant
|
| Amount: | C$20 million
|
| Units: | 11,428,572
|
| Price: | C$1.75
|
| Warrants: | One quarter-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$2.50
|
| Agent: | Non-brokered
|
| Pricing date: | Nov. 17
|
| Stock symbol: | Toronto: ML
|
| Stock price: | C$1.71 at close Nov. 16
|
| Market capitalization: | C$424.78 million
|
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