Company also downsizes convertible debt financing to C$2 million
By Angela McDaniels
Tacoma, Wash., Jan. 9 - Mira Resources Corp. said it is proceeding with a C$3.5 million non-brokered private placement of units. The 17.5 million units will be sold for C$0.20 each.
Each unit is comprised of one common share and half of a warrant, according to a company news release.
Each full warrant will be exercisable at C$0.30 per share for 12 months from closing. The strike price is a 46.34% premium over the company's C$0.205 closing share price on Friday.
Management will participate in the placement.
In addition, the C$5 million debt financing Mira announced on Nov. 30 was reduced to C$2 million. The 12% one-year credit facility is being provided by members of Mira management.
Funds advanced under the credit facility are convertible into common shares at the company's option at any time. The conversion price will be 95% of the weighted average trading price of Mira's common shares for the 20 trading days preceding the conversion date.
The combined proceeds will be used for costs associated with the recently completed re-entry program on the company's TSB No. 1 well and for working capital.
Mira Resources is an oil and gas company based in Vancouver, B.C.
| Issuer: | Mira Resources Corp.
|
| Issue: | Units, convertible credit facility
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| Amount: | C$5.5 million
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| Agent: | Non-brokered
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| Pricing date: | Jan. 9 for units, Nov. 30 for credit facility
|
| Stock symbol: | TSX Venture: MRP
|
| Stock price: | C$0.205 at close Jan. 6
|
| Market capitalization: | C$26.58 million
|
|
|
| Units
|
| Issue: | Units of one common share and half of a warrant
|
| Amount: | C$3.5 million
|
| Units: | 17.5 million
|
| Price: | C$0.20
|
| Warrants: | Half a warrant per unit
|
| Warrant expiration: | One year
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| Warrant strike price: | C$0.30
|
|
|
| Credit facility
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| Issue: | Credit facility convertible into common shares
|
| Amount: | C$2 million
|
| Maturity: | One year
|
| Interest rate: | 12%
|
| Conversion price: | 95% of weighted average trading price
|
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