Offering with a C$1.8 million greenshoe slated to finance exploration
By Devika Patel
Knoxville, Tenn., Feb. 29 - Merc International Minerals Inc. said it plans to raise C$12 million in a private placement of stock. The deal has a C$1.8 million greenshoe.
The company will sell 15 million flow-through shares at C$0.40 per share and 18,182,000 units of one common share and one half-share warrant at C$0.33 per unit. Each whole warrant will be exercisable at C$0.50 for 18 months.
The price per share reflects a 5.26% premium to the Feb. 28 closing share price of C$0.38. The strike price reflects a 31.58% premium to that price.
The deal will be conducted by a syndicate of agents, led by Fraser Mackenzie Ltd. and including Jones, Gable and Co. Ltd., Bellotti Goodman Capital Inc., Cormark Securities Inc. and PowerOne Capital Markets Ltd.
Settlement is expected March 21.
Proceeds will be used for exploration and general working capital.
Based in Toronto, Merc is a gold exploration company with an interest in the Borthwick Lake project in the Setting Net Lake area in northern Ontario.
| Issuer: | Merc International Minerals Inc.
|
| Issue: | Flow-through shares, units of one common share and one half-share warrant
|
| Amount: | C$12,000,060
|
| Greenshoe: | C$1.8 million
|
| Agents: | Fraser Mackenzie Ltd. (lead), Jones, Gable and Co. Ltd., Bellotti Goodman Capital Inc., Cormark Securities Inc. and PowerOne Capital Markets Ltd.
|
| Pricing date: | Feb. 29
|
| Settlement date: | March 21
|
| Stock symbol: | TSX Venture: MRK
|
| Stock price: | C$0.38 at close Feb. 28
|
| Market capitalization: | C$31.5 million
|
|
|
| Shares
|
| Amount: | C$6 million
|
| Shares: | 15 million
|
| Price: | C$0.40
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$6,000,060
|
| Units: | 18,182,000
|
| Price: | C$0.33
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.50
|
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