Investor Winston Mining to buy C$1.5 million of the common-share units
By Devika Patel
Knoxville, Tenn., Nov. 7 - Opawica Explorations Inc. said it has reduced a non-brokered private placement of units to C$2.04 million from C$5.54 million and revised the deal's terms. The offering priced Oct. 5.
The company will now sell 40.8 million units of one common share and one warrant at C$0.05 per unit. Winston Mining LP will now invest C$1.5 million, reduced from C$5 million.
Each warrant is exercisable at C$0.10 for two years. The strike price is a 53.85% premium to the Oct. 4 closing share price of C$0.065.
Settlement is expected Dec. 15.
Proceeds will be used for development of the company's Atikwa Lake Gold-Copper Project, to pay out the existing management and employee contracts and for other corporate purposes.
The placement was revised after the company was advised that the original deal structure would have negative implications and would cause the company to become a domestic issuer under U.S. securities laws.
Vancouver, B.C.-based Opawica is a gold exploration company.
| Issuer: | Opawica Explorations Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$2.04 million
|
| Units: | 40.8 million
|
| Price: | C$0.05
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
| Investor: | Winston Mining LP (for C$1.5 million)
|
| Pricing date: | Oct. 5
|
| Amended: | Nov. 7
|
| Settlement date: | Dec. 15
|
| Stock symbol: | TSX Venture: OPW
|
| Stock price: | C$0.065 at close Oct. 4 | Market capitalization: | C$4.97 million
|
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