By Devika Patel
Knoxville, Tenn., Aug. 27 - Ontex Resources Ltd. said it will raise C$3.9 million in a private placement of units.
The company will sell 6 million units at C$0.40 apiece for C$2.4 million and 3 million flow-through units at C$0.50 apiece for C$1.5 million on a best-efforts basis.
Each unit will consist of one common share and one warrant.
Each flow-through unit will consist of one flow-through common share and one half-share warrant.
Each whole warrant will be exercisable at C$0.65 for two years. The warrants may expire sooner if the company's common shares close at C$0.85 or higher for 20 consecutive trading days. In that case, the warrants will expire 30 days after the company notifies holders.
Primary Capital Inc. is the agent.
Proceeds will be used for drilling on the company's properties and general working capital purposes.
Ontex is based in London, Ont.
| Issuer: | Ontex Resources Ltd.
|
| Issue: | Units of one common share and one warrant; flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$3.9 million
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.65
|
| Pricing date: | Aug. 27
|
| Agent: | Primary Capital Inc.
|
| Stock symbol: | Toronto: ONT
|
| Stock price: | C$0.46 at close Aug. 26
|
|
|
| Units
|
| Amount: | C$2.4 million
|
| Units: | 6 million
|
| Price: | C$0.40
|
| Warrants: | One warrant per unit
|
|
|
| Flow-through units
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| Amount: | C$1.5 million
|
| Units: | 3 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
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