By Laura Lutz
Washington, Dec. 6 - Merrex Gold Inc. closed a private placement of units and flow-through shares for a combined C$5.3 million.
The company plans to sell 5 million flow-through shares at C$0.80 each and 1,948,031 non flow-through units of one share and one half-share warrant at C$0.70 per unit. Each whole warrant will be exercisable at C$0.90 for one year.
Expiry of the warrants may be accelerated if, anytime more than four months after closing, the weighted average trading price of the company's common shares exceeds C$1.50 for 20 consecutive trading days.
The deal was co-led by Paradigm Capital Inc. and Wellington West Capital Markets Inc.
Merrex announced the offering on Nov. 6 at a size of up to $6 million, including up to 2,857,143 units of one share and one half-share warrant at C$0.70 per unit and up to 5 million flow-through shares at C$0.80 per share.
Proceeds will be used for exploration and development on the company's Mali and Jubilee projects and for general corporate purposes.
Merrex is a mineral exploration company based in Halifax, N.S.
| Issuer: | Merrex Gold Inc.
|
| Issue: | Flow-through shares and non flow-through units of one share and one half-share warrant
|
| Amount: | C$5.3 million
|
| Agents: | Paradigm Capital Inc. (lead), Wellington West Capital Markets Inc. (lead)
|
| Pricing date: | Nov. 6
|
| Settlement date: | Dec. 6
|
| Stock symbol: | TSX Venture: MXI
|
| Stock price: | C$0.85 at close Dec. 6, C$0.72 at close Nov. 5
|
|
|
| Flow-through shares
|
| Shares: | 5 million
|
| Price: | C$0.80
|
| Warrants: | No
|
|
|
| Units
|
| Units: | 1,948,031
|
| Price: | C$0.70
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.90
|
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