Deal proceeds will help move company's McGarry Mine into production
By Devika Patel
Knoxville, Tenn., Dec. 21 - Armistice Resources Corp. said it plans a private placement of units and stock. The deal will raise about C$6 million through lead agent D&D Securities Inc.
The company will sell about 8,286,111 units of one common share and one half-share warrant at C$0.45 per unit. Each whole warrant is exercisable at C$0.55 for 18 months.
The company also will sell about 6.25 million common shares at C$0.50 apiece.
The warrant strike price and price per share reflect 25% and 13.64% premiums to the Dec. 20 closing share price of C$0.44.
The deal will be conducted on a best-efforts basis by a syndicate of agents that will include Northern Securities Inc.
Settlement is expected Dec. 30.
D&D Securities has also agreed to be the agent in arranging a C$3 million 12% bridge loan due Nov. 30, 2011 through Sprott Resource Lending Partnership. Closing of the bridge loan financing is expected on or before Jan. 31.
"It was important to have a significant equity component to our overall financing strategy," Armistice president and chief executive officer Todd J. Morgan said in a press release. "This provides us not only with additional funding to move the McGarry Mine into production but allows us the flexibility to acquire additional property and launch a significant exploration program on both the McGarry property and the adjacent Kerr-Addison property after we enter into the option agreement."
Armistice Resources is a gold exploration company based in Kirkland Lake, Ont.
| Issuer: | Armistice Resources Corp.
|
| Issue: | Flow-through common stock, units of one common share and one half-share warrant, bridge loan
|
| Amount: | C$6 million (approximate)
|
| Pricing date: | Dec. 21
|
| Stock symbol: | Toronto: AZ
|
| Stock price: | C$0.44 at close Dec. 20
|
| Market capitalization: | C$38.21 million
|
|
|
| Units
|
| Units: | 8,286,111 (approximate)
|
| Price: | C$0.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.55
|
| Agent: | D&D Securities Inc. (lead), Northern Securities Inc.
|
| Settlement date: | Dec. 30
|
|
|
| Shares
|
| Shares: | 6.25 million (approximate)
|
| Price: | C$0.50
|
| Warrants: | No
|
| Agent: | D&D Securities Inc. (lead), Northern Securities Inc.
|
| Settlement date: | Dec. 30
|
|
|
| Bridge loan
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| Amount: | C$3 million
|
| Maturity: | Nov. 30, 2011
|
| Coupon: | 12%
|
| Agent: | D&D Securities Inc.
|
| Investor: | Sprott Resource Lending Partnership
|
| Settlement date: | Jan. 31
|
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