Company sells two types of equity unit and three-year warrants in deal
By Devika Patel
Knoxville, Tenn., March 20 – Metanor Resources Inc. said it amended its private placement of units, which will now raise C$3.75 million. The deal priced for between C$3 million and C$4 million with a 15% greenshoe on Feb. 23.
The company will now sell 35 million flow-through units of one flow-through common share and one half-share warrant at C$0.05 per unit and 40 million units of one common share and one warrant at C$0.15 per unit.
The whole, three-year warrants are exercisable at C$0.055, which is identical to the Feb. 20 closing share price.
Secutor Capital Management Corp. and Marquest Capital Markets are agents.
Settlement of the first tranche of over C$3 million is expected March 25.
The company had planned to sell between 50 million and 66,666,667 units of one share and one half-share warrant at C$0.06 per unit, with the warrants exercisable at C$0.075 for two years.
Proceeds will be used for the C$1 million payment due on the company’s 10% subordinated secured convertible debentures, general working capital and exploration.
Metanor is a Val-D’Or, Quebec gold mining company.
| Issuer: | Metanor Resources Inc.
|
| Issue: | Flow-through units of one flow-through common share and one half-share warrant, units of one common share and one warrant
|
| Amount: | C$3.75 million
|
| Price: | C$0.05
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.055
|
| Agents: | Secutor Capital Management Corp., Marquest Capital Markets
|
| Pricing date: | Feb. 23
|
| Amended: | March 20
|
| Settlement date: | March 25 (for over C$3 million)
|
| Stock symbol: | TSX Venture: MTO
|
| Stock price: | C$0.055 at close on Feb. 20
|
| Market capitalization: | C$13.35 million
|
|
|
| Flow-through units
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| Amount: | C$1.75 million
|
| Units: | 35 million
|
| Warrants: | One half-share warrant per unit
|
|
|
| Units
|
| Amount: | C$2 million
|
| Units: | 40 million
|
| Warrants: | One warrant per unit
|
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