Brokered offering raises funds to explore company's West Mali property
By Devika Patel
Knoxville, Tenn., April 1 - Merrex Gold Inc. said it settled a C$10.17 million private placement of units. Casimir Capital LP was the lead agent of a syndicate that included Raymond James Ltd. for the deal, which priced for C$10 million with a C$1.5 million greenshoe on March 25.
The company sold 20.34 million units of one common share and one half-share warrant at C$0.50 each. Of the units, 340,000 were part of the partially exercised greenshoe. The remaining portion of the greenshoe may settle within 30 days.
The whole warrants are each exercisable at C$0.75 for 18 months. The strike price represents a 31.58% premium to C$0.57, the closing share price on March 24.
Proceeds will be used for exploration work on the company's property in West Mali and working capital purposes.
Based in Halifax, N.S., Merrex is a mineral resource exploration company exploring for gold, zinc and nickel.
Issuer: | Merrex Gold Inc.
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Issue: | Units of one common share and one half-share warrant
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Amount: | C$10 million
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Greenshoe: | C$1.5 million
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Units: | 20.34 million
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Price: | C$0.50
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Warrants: | One half-share warrant per unit
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Warrant expiration: | 18 months
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Warrant strike price: | C$0.75
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Agent: | Casimir Capital LP (lead), Raymond James Ltd.
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Pricing date: | March 25
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Settlement date: | April 1
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Stock symbol: | TSX Venture: MXI
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Stock price: | C$0.57 at close March 24
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Market capitalization: | C$49.23 million
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