By Devika Patel
Knoxville, Tenn., Oct. 27 - Mountain Lake Resources Inc. said it will not proceed with the remainder of a non-brokered private placement of units.
The company settled the first tranche on Oct. 22, raising C$350,000. The deal priced for C$1.35 million on Oct. 3.
Although the placement was non-brokered, the company said it had engaged agents Citadel Securities Inc. and Scarsdale Equities LLC on a non-exclusive basis to assist in the completion of the deal.
The company sold 1 million units of one common share and one half-share warrant at C$0.35 per unit in the first tranche. 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 had planned to 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, but is canceling this portion of the deal. Each whole flow-through warrant would have been exercisable at C$0.50 for two years.
The company said it has sufficient proceeds to finance its 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$350,000
|
| Units: | 1 million
|
| Price: | C$0.35
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.42
|
| Agent: | Non-brokered, Citadel Securities Inc. and Scarsdale Equities LLC
|
| Pricing date: | Oct. 3
|
| Settlement date: | Oct. 22
|
| Amended: | Oct. 27
|
| Stock symbol: | TSX Venture: MOA
|
| Stock price: | C$0.415 at close Oct. 2
|
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