Brokered deal's funds used for exploration, working capital purposes
By Devika Patel
Knoxville, Tenn., Nov. 15 - Mineral Mountain Resources Ltd. said it completed a C$2.88 million private placement of units. The deal priced for C$3.04 million with a 15% greenshoe on Oct. 27 and was conducted on a commercially reasonable efforts basis via a syndicate of agents led by Canaccord Genuity Corp. and including Industrial Alliance Securities Inc.
The company sold 2.06 million units of one common share and one half-share warrant at C$0.50 per unit and 3,078,000 flow-through common shares at C$0.60 per share.
Each whole two-year warrant will be exercisable at C$0.60 in the first year and at C$0.70 in the second year. The strike prices are 13.21% and 32.08% premiums, respectively, to C$0.53, the closing share price on Oct. 26. The price per flow-through common share is a 13.21% premium to that price.
Proceeds will be used for exploration of mineral properties and general working capital purposes.
Vancouver, B.C.-based Mineral Mountain explores for precious metals, including gold and silver, and base metals, including zinc, lead and copper.
| Issuer: | Mineral Mountain Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$2,876,800
|
| Agent: | Canaccord Genuity Corp. (lead), Industrial Alliance Securities Inc.
|
| Pricing date: | Oct. 27
|
| Settlement date: | Nov. 15
|
| Stock symbol: | TSX Venture: MMV
|
| Stock price: | C$0.53 at close Oct. 26
|
| Market capitalization: | C$33.76 million
|
|
|
| Units
|
| Amount: | C$1.03 million
|
| Units: | 2.06 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.60 in the first year, C$0.70 in the second year
|
|
|
| Shares
|
| Amount: | C$1,846,800
|
| Shares: | 3,078,000
|
| Price: | C$0.60
|
| Warrants: | No
|
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