By Devika Patel
Knoxville, Tenn., Oct. 22 - Mountain Lake Resources Inc. said it settled the first tranche of a C$1.35 million non-brokered private placement of units, raising C$350,000. The deal priced Oct. 3.
Although the placement is non-brokered, the company said it has engaged agents Citadel Securities Inc. and Scarsdale Equities LLC on a non-exclusive basis to assist in the completion of the deal.
The company will sell 1 million units of one common share and one half-share warrant at C$0.35 per unit. Each whole warrant will be exercisable at C$0.42 for two years. It sold 1 million units in this tranche.
The warrants may expire sooner if the company's shares have a volume-weighted average closing price higher than C$0.84 for more than 20 consecutive trading days. In that case, the warrants will expire 30 days after the company notifies holders.
Mountain Lake also will sell 2.5 million flow-through units of one flow-through common share and one half-share flow-through warrant at C$0.40 per unit. Each whole flow-through warrant will be exercisable at C$0.50 for two years.
The flow-through warrants may expire sooner if the company's shares have a volume-weighted average closing price higher than C$1.00 for more than 20 consecutive trading days. In that case, the warrants will expire 30 days after the company notifies holders.
Proceeds will be used to finance the company's fall/winter exploration and development programs and for general working capital purposes.
Based in Vancouver, B.C., Mountain Lake is a diversified junior mining and exploration company.
| Issuer: | Mountain Lake Resources Inc.
|
| Issue: | Units of one common share and a half-share warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$1.35 million
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
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| Agent: | Non-brokered, Citadel Securities Inc. and Scarsdale Equities LLC
|
| Pricing date: | Oct. 3
|
| Settlement date: | Oct. 22 (for C$350,000)
|
| Stock symbol: | TSX Venture: MOA
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| Stock price: | C$0.415 at close Oct. 2
|
|
|
| Units
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| Amount: | C$350,000
|
| Units: | 1 million
|
| Price: | C$0.35
|
| Warrant strike price: | C$0.42
|
|
|
| Flow-through units
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| Amount: | C$1 million
|
| Units: | 2.5 million
|
| Price: | C$0.40
|
| Warrant strike price: | C$0.50
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