By Devika Patel
Knoxville, Tenn., Dec. 24 - Minera Andes Inc. said it has raised C$21.52 million in the first tranche of a C$35 million private placement of units. The deal priced Dec. 19.
In this tranche, Minera sold 13,880,645 units. It plans to sell a total of 22,580,645 units at C$1.55 apiece in multiple tranches.
Each unit consists of one common share and a half-share warrant. The whole warrants are exercisable at C$2.00 for two years.
Scotia Capital Inc. will be the agent in Canada while Shoreline Pacific LLC and Casimir Capital LP will be the agents in the United States. They received a 5% cash commission and also a number of compensation options equal to 5% of the number of units sold. Each compensation option is exercisable for one unit at C$1.70 for two years.
Proceeds will be used to fund the company's share of the costs at the San José project in southern Argentina, as well as for exploration drilling and completing a scoping study at Los Azules and for general corporate purposes.
Spokane, Wash.-based Minera Andes is a gold, silver and copper exploration company.
| Issuer: | Minera Andes Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$35 million
|
| Units: | 22,580,645
|
| Price: | C$1.55
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.00
|
| Agent: | Scotia Capital Inc., Shoreline Pacific LLC, Casimir Capital L.P.
|
| Fees: | 5% in cash, 5% in options
|
| Pricing date: | Dec. 19
|
| Settlement date: | Dec. 21 (for C$21,515,000)
|
| Stock symbol: | Toronto: MAI
|
| Stock price: | C$1.55 at close Dec. 19
|
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