By Devika Patel
Knoxville, Tenn., Aug. 12 - Odyssey Resources Ltd. said it has settled the first tranche of a C$4.5 million private placement of stock for C$3.2 million. The deal priced as an offering of subscription receipts on May 23.
As previously reported, the company planned to sell 18 million subscription receipts at C$0.25 apiece. It instead plans to sell common shares at that price. It sold 12.8 million shares in this tranche and plans a second tranche of 5.2 million shares.
The receipts were to be exchangeable for one common share each upon receiving shareholder approval for the deal.
Dundee Resources Ltd. is expected to buy 10 million shares for C$2.5 million. Insiders are expected to participate for C$600,000.
Proceeds will be used to repay the outstanding principal amount, interest and corresponding financing fee owed in connection with a credit agreement between Odyssey and Dundee Resources for C$530,000. The remainder of the net proceeds will be used for general corporate and working capital purposes.
Toronto-based Odyssey is a mining company focused on properties in the Mediterranean region.
| Issuer: | Odyssey Resources Ltd.
|
| Issue: | Common shares
|
| Amount: | C$4.5 million
|
| Shares: | 18 million
|
| Price: | C$0.25
|
| Warrants: | No
|
| Investor: | Dundee Resources Ltd. (for C$2.5 million)
|
| Pricing date: | May 23
|
| Settlement date: | Aug. 12 (for C$3.2 million)
|
| Stock symbol: | TSX Venture: ODX
|
| Stock price: | C$0.21 at close May 23
|
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