Company offers shares, three-year warrants at C$0.20 per unit in deal
By Devika Patel
Knoxville, Tenn., June 16 – Merrex Gold Inc. said it raised C$412,000 in the second and final tranche of a C$3.57 million non-brokered private placement of units. The deal priced for C$3,512,000 on June 3, was increased to C$3,532,000 on June 9 and raised C$3.16 million on June 8.
In total, the company sold 17.86 million units of one common share and one warrant at C$0.20 per unit. Each warrant is exercisable at C$0.30 for three years. The strike price is a 36.36% premium to C$0.22, the June 2 closing share price.
Merrex sold 15.8 million units in the initial tranche and 2.06 million units in the second tranche.
Proceeds will be used for maintaining the company’s 50% interest in the Siribaya Gold JV with Iamgold Corp. and working capital.
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 warrant
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Amount: | C$3,572,000
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Units: | 17.86 million
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Price: | C$0.20
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Warrants: | One warrant per unit
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Warrant expiration: | Three years
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Warrant strike price: | C$0.30
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Agent: | Non-brokered
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Pricing date: | June 3
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Upsized: | June 9
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Settlement date: | June 8 (for C$3.16 million), June 16 (for C$412,000)
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Stock symbol: | TSX Venture: MXI
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Stock price: | C$0.22 at close June 2
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Market capitalization: | C$44.48 million
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